Grad Student finds mistakes in "the" difinitive study that proved high levels of Gvt Debt had negative effect on Economic Growth.
Quote:For Ash, the findings mean the claim that high public debt causes growth to stall no longer holds water."Their central thesis has been substantially weakened," he said.However......Reinhart and Rogoff, however, say their conclusion that there is a correlation between high debt and slow growth still holds.
Hmmmm........they can't BOTH be right!!????
One stat that seems to be true is this:Once a government's debt ratio starts to go OVER 100% to GDP.......there comes a "point of no return." that leads to economic implosion for that country.
Just ASK GREECE!!
Link:Article: the Global DEBT CLOCK (Nice world map!)
Quote:Does it matter? After all, world governments owe the money to their own citizens, not to the Martians. But the rising total is important for two reasons. First, when debt rises faster than economic output (as it has been doing in recent years), higher government debt implies more state interference in the economy and higher taxes in the future.Second, (my comment...AND HERE IS THE PROBLEM!!!!) debt must be rolled over at regular intervals. This creates a recurring popularity test for individual governments, rather as reality TV show contestants face a public phone vote every week. Fail that vote, as various euro-zone governments have done, and the country (and its neighbours) can be plunged into crisis.TICK TOCK...................................after the Rapture, IT ALL JUST IMPLDES!!!