1/ repeat after me: debt funds assets and spending. Assets and spending don’t always pan out, yet the money is still owed. This is literally one of the dumbest things I’ve seen on Twitter in 2020. https://twitter.com/paulkrugman/status/1263803278099451911

2/ while it’s true when debt is created, an asset is created (so things are balanced in the immediate term), the outcome of the asset is contingent on its return. If debt funding always stayed balanced in perpetuity...

3/ how can we have sovereign debt crises or hyperinflation (foreign issued bonds, in this example, are still basically a red herring, fact remains assets underperformed)

4/ has this “economist” never seen a case study of a company that’s issued debt, and then filed bankruptcy? I wonder why that happened... the money spent doesn’t end up producing something that’s worth the same or more than the debt

5/ I mean, gmafb, why does anyone even need to explain this?