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Ok thanks: he's talking about the internal or state liabilities, that are separate from the federal debt. In that sense, the debt load is only ½ of CA GDP (federal liabilities load is 128% of the US GDP). So I don't see why it's that significant?
I didn't really understand that whole part of the analysis, since the event being described is highly inflationary, which should make repaying debts easier rather than more difficult. Perhaps I missed something, though.
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