US debt is up by 1 trillion dollars in a month 😧

Industry Insights
1

debt
debt1080×1412 128 KB

Old habits die hard. All the debt ceiling drama and debt is up by 3% in a month.

If they borrow at these higher rates, the number is only gonna get higher - increasing inflation and create multi asset bubble.

This news should worry long term investors especially as nobody cares about stuff like this until market starts reacting negatively.

For this precise reason, i doubt if fed will further raise rates.

After strong jobs datas earlier last week, we saw a “sudden” revision of the employment data which again meant lesser hopes of rate hikes.

US badly wants a recession quickly to get out of the woods without much damage but that is not happening and as long as it doesn’t happen, fed will still try to hold on considering the fact that if they don’t inflation will again start surging.

I so wish to see Gold and BRICS currency to come into the picture to make dollar less dominant. It has crossed the recklessness line long ago and is now just in a bubble of its own. Like monopoly cash :money_with_wings:

2

While public debt is a concern for countries that borrow US dollars, it is much less of an issue for the US itself. The dollar is the world’s reserve currency and more debt doesn’t decrease outside investors’ demand for it.

3

The level of debt is reaching towards unsustainable zone. No wonder, the inflation is much higher than growth there implying negative real GDP growth.

I don’t know when and where it gets crazier but I see a change happening to dollar regime in the short term.