re: #157 aagcobb

Let me explain in more detail. Greece is a small country, and its economy isn’t likely to grow much in the future. It uses the Euro, so it can’t inflate its debt away by printing more money. The U.S. is a big country, and our economy is likely to continue growing a lot in the future. Relative to GDP, the US was much deeper in debt in 1946 than it is now, and we never paid off that debt, we just kept rolling it over. But it didn’t matter, because our economy has grown so much the total amount of debt we had in 1946 is tiny compared to the size of our economy now. So the answer is, we can keep rolling our debt over because our economy grows, but Greece can’t.

Well, that’s true, they can’t inflate on account of the Euro, I hadn’t thought of that. And they can’t borrow because they are a bad bet. How’d they get into this situation in the first place?