From a net debt point of view if you look at current IMF data and projections, the net debt to GDP for USA as of 2007 was around 45%. After the 2007-2008 financial crisis it mostly stabilized around 83% of GDP in the 2011-2019 period. The 2020 COVID-19 shock seems have the debt surging to around 110% of GDP by 2025. So in many ways while the surge of net debt to GDP is large but the 2019-2025 rise is not as large as the 2007-2012 period. In absolute terms 110% net debt to GDP is very large and is around where Greece was BEFORE the 2007-2008 crisis. So I guess we will be one more crisis away from becoming Greece with the safety net that we get to print our own currency.
Pretty big safety net in all fairness. Especially since in the Greek case its undoubted problems were made
dramatically worse by its membership of the Eurozone.
Also, worth pointing out the other safety net, ie the huge numbers still invested in treasuries as the safest of safe assets, quite unlike Greek government bonds well... ever. I suspect if we ever get to a stage where investors refuse to buy/rollover treasuries then the whole world, not just the US, will be f*****.
