No worries, it’s all fine

This relaxed response to the US economy hitting historical debt heights tends to remind me of Goldman Sachs telling everyone that the US economy was recession-proof in December, 2019:

Economists and deficit hawks have warned for decades that the United States was borrowing too much money. The federal debt was ballooning so fast, they said, that economic ruin was inevitable: Interest rates would skyrocket, taxes would rise and inflation would probably run wild.

The death spiral could be triggered once the debt surpassed the size of the U.S. economy — a turning point that was probably still years in the future.

It actually happened much sooner: sometime before the end of June.

The problem with debt crisises is that everything is always fine right up until the moment that it isn’t.