/biz/ - Business & Finance

>>1453855
>Public debt is always "sustainable"
Tell that to Greece.
Or Venezuela.
Or any other developing economy who is being destroyed by the western developed worlds aim to *increase* inflation.
Policies seeking to increase inflation caused the prices of everyday goods like bread and rice to rise, which have caused riots, fuelled the Arab Spring (though it was not the only reason), among other things.
It works for us in the west, kind of, but its a short term fix to a long term problem, that has long term issues, such as weakening the overall world economy.
China is no longer the cheapest place to make goods - Mexico beats it by 20-30% and Chinas recent economic struggles saw inflation send the price of pork through the roof - which they were more worried about than their falling stock prices as pork is a staple food in China.

You are correct that Public debt is more stable than private debt, but right now we have both.
Growth has been failing to meet the yearly 2% target for most of the developed world, though it is occasionally hit or beaten (USA hit highs of just short of 5% after the 2008 crisis)

Right now, its very likely that growth is being maintained purely by the 0% interest rate loans. These won't last forever. But very few nations or states are preparing their economy to be capable of weathering that inevitability with those 0% loans, or taking advantage by reducing their leverage on those positions to manageable levels should interest rates rise.

And of course the whole populist gibsmedat parties win as mentioned here >>1453913, undoing the responsible and smart work achieved by those who understand the problem.

Its going to be 2008 all over again, where "no-one could have predicted this", though many did.

These aren't just my opinions - they're supported and formed from reading and speaking with several top economists, traders, and market analysts. They're not necessarily right, but i trust them over the media and politicians, wouldn't you?