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Mind The Debtberg: Why Interest Rates Don’t Need To Rise Much To Trigger Recession

Summary:
While it is true that U.S. interest rates are still very low by historic standards, the reality is that rates do not have to rise anywhere near as high as they did in the past to cause recessions due to America’s debt load that has grown dramatically over the past several decades. Since the early-1980s, total U.S. debt – both public and private – has been growing at a faster rate than the underlying economy, as measured by the nominal GDP: https://realinvestmentadvice.com/why-interest-rates-dont-need-to-rise-much-to-cause-recessions-now/

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While it is true that U.S. interest rates are still very low by historic standards, the reality is that rates do not have to rise anywhere near as high as they did in the past to cause recessions due to America’s debt load that has grown dramatically over the past several decades.

Since the early-1980s, total U.S. debt – both public and private – has been growing at a faster rate than the underlying economy, as measured by the nominal GDP:

Mind The Debtberg: Why Interest Rates Don’t Need To Rise Much To Trigger Recession

https://realinvestmentadvice.com/why-interest-rates-dont-need-to-rise-much-to-cause-recessions-now/

David Stockman
David Alan Stockman (born November 10, 1946) is a former businessman and U.S. politician who served as a Republican U.S. Representative from the state of Michigan (1977–1981) and as the Director of the Office of Management and Budget (1981–1985) under President Ronald Reagan.

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