U.S. Public Debt at 127.78% of GDP... How sustainable is it?
Overall, as the U.S. Federal Debt keeps on climbing, the S&P 500 keeps on climbing... It might be great for the U.S stock market but it is very bad for present and future generations.
The U.S. Public Debt is now at 127.78% of the U.S. GDP... How sustainable is this trend?
There used to be lots of international buyers who were keen on buying U.S Treasury Notes and U.S Treasury Bonds, such as China.
Will China still buy happily those financial products, thereby financing this ever-increasing debt, set on an uncontrollable path?
As we now enter a phase where each country thinks of its own survival, how will be willing to finance the debt of other countries? It is becoming less and less likely. International cooperation related to unsustainable borrowing, will trickle down considerably. And the new reality of "to each his own" will become a renewed source of conflict, domestically and globally.
Time for new resolutions or do we mess it up more?
François Normandeau Institutional Research Director at ADX-BRIEFING
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