Chapter

                      U.S. Debt

The global surge in debt has fueled unprecedented prosperity, but there looms the concern that one day this debt binge may become unsustainable. The United States is now grappling with a debt-to-GDP ratio exceeding 130%, while Japan stands at a staggering 180%. Notably, the interest payments on U.S. debt alone have surpassed the entire military budget. Compounding the issue, rising interest rates are set to inflate the burden of debt servicing even further. The question arises: when will this mounting debt reach a tipping point of unsustainability, and when will bond investors discern the end game? On this matter, I've shared my insights in a short piece published in the Wall Street Journal.

The global surge in debt has fueled unprecedented prosperity, but there looms the concern that one day this debt binge may become unsustainable. The United States is now grappling with a debt-to-GDP ratio exceeding 130%, while Japan stands at a staggering 180%. Notably, the interest payments on U.S. debt alone have surpassed the entire military budget. Compounding the issue, rising interest rates are set to inflate the burden of debt servicing even further. The question arises: when will this mounting debt reach a tipping point of unsustainability, and when will bond investors discern the end game? On this matter, I've shared my insights in a short piece published in the Wall Street Journal.
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The global surge in debt has fueled unprecedented prosperity, but there looms the concern that one day this debt binge may become unsustainable. The United States is now grappling with a debt-to-GDP ratio exceeding 130%, while Japan stands at a staggering 180%. Notably, the interest payments on U.S. debt alone have surpassed the entire military budget. Compounding the issue, rising interest rates are set to inflate the burden of debt servicing even further. The question arises: when will this mounting debt reach a tipping point of unsustainability, and when will bond investors discern the end game? On this matter, I've shared my insights in a short piece published in the Wall Street Journal.

Jan 7th, 2024

Built on the back of debt!
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Built on the back of debt!

Nov 18th, 2023

It is not a matter of if our debts overwhelms the system, it is when they will overwhelms the system!Debt is income you have not yet worked for.

Treasury needs a better long game
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Treasury needs a better long game

Nov 18th, 2023

As of this writing U.S. debt is $34 trillion dollars or 135% debt to GDP. As this article predicted, the ten year Treasury bounced off of 5% last week, and this piece that I wrote in 2013 has become a reality, BUT, the interest could actually be approaching 1 trillion!

Politicians are out of options
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Politicians are out of options

Nov 18th, 2023

JFKAsk not, what your country can do for you, ask what you can do for your country.TodayAsk not, what you can do for your country, ask what your country can do for you.

Mandatory spending vs the constitution
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Mandatory spending vs the constitution

Nov 18th, 2023

Nowhere in the Constitution does it mention mandatory spending.How did socialism take such a hold.

DEBT buys a glimpse of prosperity you haven't earned.
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DEBT buys a glimpse of prosperity you haven't earned.

Nov 18th, 2023

I wrote this piece n 2012 when debt to GDP was 100%, this chart projected our debt to GDP to be 110% by 2024, but our debt is already at 135% of GDP.

A governance conundrum
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A governance conundrum

Nov 18th, 2023

First rail of politics: Don't cut constituents benefits.Second rail of politics:  Don't raise constituents taxes.What's left?MASSIVE UNSUSTAINABLE DEBT!

The Final Bubble
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The Final Bubble

Nov 18th, 2023

I predicted that the bond bubble would pop in 2018, but bonds lost 50% of their value in 2023, I was a bit early!

U.S. debt is Subprime
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U.S. debt is Subprime

Nov 18th, 2023

The U.S. Government is the largest holder of adjustable rate debt in the world.

Baby Boomers v Their Children
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Baby Boomers v Their Children

Oct 11th, 2023

Baby-boomers have lived through one of the longest periods of prosperity the WORLD has ever seen, with U.S. GDP growing by 550% over the past 31 years.