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The national debt just hit $40 trillion and rising. Seems like possible dire consequences for the markets perhaps the economy as more borrowing may raise interest rates.
’What is the general consensus on the risks we may be facing. Time to go into bonds?
As long as the people who run the show keep thinking the way to get out of debt is to cut income it is going to get exponentially worse.
I think we have caught up with Greece!
Great article. The problem is this is a PROBLEM.
I’d say no. The government will issue more bonds to cover spending. Investors will want higher yields, and that will depress bond values
To me the most important number is not the ones discussed below it is these two:
1) 1 trillion dollars- which spent annually just on financing the debt last year- think of the programs that could finance, ah like Social Security and Medicare, no future cuts would be necessary
2) 14%- the percentage of the Federal government’s “budget” that is the debt payments.