Yahoo!Finance-Bloomberg/Christopher Condon/5-31-2023
“One reason she’s sanguine is that Yellen is among a number of prominent economists to embrace an alternative method for measuring the sustainability of the nation’s debt. Instead of looking at the pile of outstanding bonds as a share of the economy’s output, she prefers the ratio of interest payments — crucially, after adjustment for inflation — to GDP.”
USAGOLD note: It is beyond our understanding how a Treasury Secretary could look at the level of the federal government’s interest payments without being alarmed. It’s because insiders like Yellen do not lose sleep over the national debt, that so many others do.
Sources: St. Louis Federal Reserve [FRED], Office of Management and Budget
