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Debt Spiral

All articles tagged with #debt spiral

"Rising Long-Term Interest Rates: What You Need to Know"

Originally Published 1 year ago — by Seeking Alpha

The Federal Reserve is expected to lower interest rates, but the economy and stock market are already on an upward trajectory and may not need stimulation. Treasury Bills currently yield 2.5% more than historical average, while long-term bonds earn 0.5% less. Inflationary pressures from COVID spending could lead to an increase in long-term government bond yields and a potential debt spiral. If inflation increases, long-term bond yields will likely increase significantly, impacting the economy and government debt.

business economy debt-spiral economy federal-reserve inflation interest-rates long-term-bonds

"America's Looming Financial Crisis: Black Swan Author Warns of $54 Trillion Debt Spiral"

Originally Published 1 year ago — by The Daily Hodl

Black Swan author Nassim Taleb warns that the US is facing a potential financial "death spiral" as the national debt increases by $201 billion in just one month, reaching $34.191 trillion. Taleb criticizes Congress for avoiding addressing the growing fiscal deficit, fearing the consequences of doing the right thing. He emphasizes the vulnerability of the US economy to external shocks due to globalization and interconnectedness, expressing gloom about the Western political system's ability to address the situation.

business economy debt-spiral economy fiscal-deficit globalization nassim-taleb us-national-debt