2024-03-18 12:10:51 ET
Summary
- With U.S. debt reaching $34 trillion and interest payments en route to becoming the key driver of government spending, highly prolonged periods of inflation can be expected.
- Misapplied signaling via economic indicators being printed add volatility and snapbacks to a market with continually-worsening breadth.
- With personal savings falling and credit card debt increasing, the American consumer's preferences are no longer barometers for market performance.
In recent times, U.S. debt issuances had become a flashpoint for brinkmanship between various factions of the political spectrum with the legislature. Currently, limits on the maximum allowable debt - which has seen a near-constant increase over the years - have been suspended until January 1, 2025. It can be assumed that the optics associated with the tussle and inevitable carve-outs that arose prior to each "debt ceiling" increase being approved was deemed inconducive, with protracted conflicts on procedure over each legislative action taking its place instead.
Overall, it can be seen that America's addiction to debt has definitive "epochs" in its history....
Read the full article on Seeking Alpha
For further details see:
A Trillion Dollars Created Every 100 Days Weighs Down Markets