When central governments do their jobs well, they tax and spend in ways that provide broad-based productivity and prosperity, sometimes borrowing more than they are earning and sometimes paying it back, and when central banks do their jobs well, they keep the credit, debt, and capital markets in relative balance, which produces less disruptive big swings. However, for the previously mentioned reasons, the bias to create more ups in economies and markets through credit stimulation leads to long-term uptrends in debt and debt service relative to incomes until they become too large a percentage of income to be sustainable. For a picture of where we are headed and what we should do, you can order my new book, How Countries Go Broke: The Big Cycle, at the link in my bio. #howcountriesgobroke #principles