Interesting question actually. Given a level of inequality, how should debt be notionally 'distributed'? twitter.com/jamyerson/stat
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.@gibsopi Yes but "government" isn't an abstraction. Sovereign debt *is* a representation of the credit worthiness of a people
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.@gibsopi It's not like we're in 16thc Spain where you can get sloppy with sovereign debt defaults, even with a reserve currency
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@gibsopi Not the sort of question you can definitively dispose of :). Sov debt cannot be separated from confidence in a people
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@gibsopi Sure, we can safely get to debt at 90% of GDP under some conditions etc. But safe/dangerous boundary is complex
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@gibsopi The location of the boundary is not a function of macro-finance tech alone. It's a fn of specific situation.
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@gibsopi Key variables: demographics, dev levels, physical resource levels, comparisons with peer nations, global trade levels...
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@gibsopi I honestly have no idea what to make of current global macro climate. Very weird/unprecedented conditions.
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@gibsopi There's no ground truth here, remember. Confidence is relative to *other* instruments available globally.
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@gibsopi Agreed. But it's no longer as unassailable as it once seemed. In 1990, Saudis would not even have bluffed about dumping
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Thinking of macroeconomic debt this way is simply wrong, especially since the $ is the world's reserve currency. US debt=global asset

