Yep, it can't be done....apparently that was privately finally accepted post 2008, if not before.

It's all about being able to service the interest on the debt......which is also a joke....For example, the US earns around 4 trillion and is spending around 6 trillion.....the interest is running out of control and they don't care because it's about kicking the can down the road and not being that guy in the road when it runs out.

Unless there is a loss of confidence or some other shock the interest can be serviced up until around 27 or 28.....but I can see the cards falling by 2030 definitely.

Once you can't keep up with paying debt interest.....unless the creditors universally agree on deferment you're buggered....and even if they do no one's going to buy bonds anymore....or in other words government debt anymore.

Now that'll be tough for all of us.

Edited by Stirlingsays (21 Oct 2023 6.19pm)

'Who are you and how did you get in here? I'm a locksmith. And, I'm a locksmith.' (Leslie Nielsen)

Step up Willo, you've been mentioned!

Credit rating agencies are generally staffed by people who couldn't make the grade in banking or failed in another finance discipline.

The last two insurance company failures in the UK for example were both rated at leats A+.

Giving credibility to these rating companies amd more importantly having them influence interest rates on borrowing is a mystery.

It's the Bank of England or IMF mentality, consistently wrong and not fit for purpose but better than nothing.

Responsibility Deficit Disorder is a medical condition. Symptoms include inability to be corrected when wrong, false sense of superiority, desire to share personal info no else cares about, general hubris. It's a medical issue rather than pure arrogance.

I think he meant least.

He has a point Credit Rating agencies live a charmed life. They consistently get things wrong and then are great at telling the rest of us about it too late.

I have seen this over decades, where were they in 2008? Many countries have failed to repay their debt and the ratings got cut only when they stopped paying.

They are the masters of hindsight when what we need is foresight.

Edited by Badger11 (25 Oct 2023 9.07am)

One more point

typo for least

I have been dealing with rating agencies, mostly A.M Best and Moody's for 40 years in a professional capacity in the field of non-life insurance.

Doubtless you are better qualified than me though.

Edited by HKOwen (25 Oct 2023 9.40am)

Responsibility Deficit Disorder is a medical condition. Symptoms include inability to be corrected when wrong, false sense of superiority, desire to share personal info no else cares about, general hubris. It's a medical issue rather than pure arrogance.

No , you just thought you would try and score a typo point.

Edited by HKOwen (25 Oct 2023 9.53am)

Responsibility Deficit Disorder is a medical condition. Symptoms include inability to be corrected when wrong, false sense of superiority, desire to share personal info no else cares about, general hubris. It's a medical issue rather than pure arrogance.