Former Treasury Secretary says debt to GDP ratio is ‘misleading and problematic’

MarketWatch/Chris Matthews/12-2-2020

“An all-star panel of economists implored Congress to pass a major new coronavirus stimulus package, with former U.S. Treasury Secretary Larry Summers making the argument that Washington politicians should become much more comfortable with large deficits and a growing national debt.”

USAGOLD note:  We pass along this report as a heads up on the dominant mindset that will gain control of the executive branch of the federal government come January 20, 2021. In this same panel discussion, former Fed chairman Ben Bernanke advised that “we shouldn’t balance the budget anytime soon.” I doubt that anyone in that panel is particularly worried about such an outcome. Over the past fifty years, there has been just one in which the U.S. government ran a budget surplus – in 2001 during the Clinton administration.

bar chart showing the percent change in national debt from a year ago 1971 to presentSources:  St. Louis Federal Reserve [FRED], U.S. Department of Treasury, Fiscal Service
Click to enlarge

Repost from 12-4-2020

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