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we've both commented on this before, and we just look at this from two different economic perspectives.  You tend to focus on the absolute size of the US debt, and the fact that it is high because the country is so big.  And I acknowledge that is factually accurate.

I tend to focus on lender's evaluation of the debtors ability to repay the loan.  One of the key aspects of that decision is how the debt relates to the debtor's ability to pay.  I would argue that is based upon 1)some evaluation of debt related to income or net worth--so I look at total debt divided by annual GNP, and 2)and some evaluation of the future strength of the countries economy, so growth in GNP, evaluation of productivity, evaluation of the countries dominance in key industry sectors, etc.

Thus you think it's more important than I do.

by wchurchill on Tue Apr 4th, 2006 at 07:09:55 PM EST
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I don't doubt America's ability to pay. I doubt the rest of the world's ability to lend enough money. Thus my focus on absolute amounts - on the LENDING side it's a problem.

In the long run, we're all dead. John Maynard Keynes
by Jerome a Paris (etg@eurotrib.com) on Thu Apr 6th, 2006 at 09:22:50 AM EST
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