Hm, ETFs usually grow by about 7-8 % historically. The US dept grew by 7,9 % historically. Is all the growth we see just money being borrowed?
Generally speaking debt to GDP is a good indicator for that. If you borrow money and invest it well, which for a governement means infrastructure and education spending(also has to be done well though), then your economy should grow faster then your debt. However there is a big issue here, in that some countries have their central banks print money and then buy government debt with that. When that happens that is basically just the government lending money to itself, so a big fat zero.
But a lot of US growth is debt fueld. Wars cost a lot of money after all.
No, that’s not how you should compare debts. Either show debt per capita or debt as a percentage of GDP. The shown chart is just misleading.
If you believe a debt crisis in Albania is as bad as one for in the US for the world economy, then you are right.
I have neither said that nor do I believe that and I think you have misunderstood me. I criticise how data is presented in this chart. That’s all.
The reason a debt crisis in the US is worse for the world economy than one in Albania, is because the US has more debt. That is exactly what these charts show and when you make the debt relative to some other metric like population or GDP you hide that. In the last debt crisis China was not a factor, but if would have one now, that would be very different.
Stick to tge criticism. The user is right
Does this coincide with their GDP overtaking that of the EU, as well?
Edit: I looked it up. The IMF says that in 2026, the EU has a GDP of $22.52 trillion and China has a GDP of $20.65 trillion. The US has a GDP of $31.82 trillion, for comparison.
Source: https://www.imf.org/external/datamapper/NGDPD@WEO/EU/CHN/USA
Source
IMF takes the GDP from whatever CCP is reporting fyi. Don’t think it’s been verified by accountants or independent parties or anyhting.