gerald lindner
1 min readApr 16, 2023

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The total US debt* is now about 4,1% of US GNP. To be able to service this debt without Greek or Srilankan-style hardships, the US GNP would have to grow 4,1x real interest rate value.

The current real interest rate** of 1,2% is still well below its historical average. Doesn't that mean that the Federal interest rate now of 4,9% is simply a conscious policy of intentional "depreciation" of this huge debt?

4,1x1,2%= 4,9%, now why does that number not surprise me? They think that they can get away without anybody in the US noticing it directly in their general standard of living.

Inflation rises all prices, rising the GNP value. Thus by default lowering the debt-to-GNP ratio and lowering the need for (unrealistic) higher economic growth numbers.

All holders of dollars and dollar-denominated bonds are the big losers: the US Social Security trusts ( $2.7 T), the Military Retirement Fund ($1.36T), (so stealthfully robbing the US weak of their pensions), foreign countries and investors $7,3T (main countries Japan, China and UK and international pension funds). The BRICS are not stupid, they too see what the US is doing.

Real assets and stockholders are left unharmed so in short the rich. Now why doesn't that too not surprise me in the case of the US? Who were again the huge winners of the various QE's?

* https://www.statista.com/statistics/1083150/total-us-debt-across-all-sectors/

**https://fred.stlouisfed.org/series/REAINTRATREARAT1YE

https://www.thebalancemoney.com/who-owns-the-u-s-national-debt-3306124

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gerald lindner
gerald lindner

Written by gerald lindner

My 3 continents, 5 countries youth deconstructed most cultural lock-ins and social biases. It opened my mind to parallel views and fundamental innovations.

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