, some commentators have argued – but the economy is just too strong to have an imminent debt crisis, Krugman said.
"Bottom line: Is the United States likely to face a debt crisis anytime soon, or even in the next decade or two? Almost surely not," Krugman said in a New York Times That's because a debt spiral is caused by the interest rate on government debt being significantly larger than economic growth, which isn't the case. Even with the Fed's aggressive hiking of interest rates over the past year to tame inflation, the rate on inflation-protected 10-year bonds hovers around 1.
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