Robin Brooks, economist at the Brookings Institution, warns about the critical state of U.S. debt. According to him, long-term Treasury yields continue to rise despite weak economic indicators, revealing weaker-than-expected demand for U.S. debt. U.S. debt has reached $40 trillion and the budget deficit is heading toward $2 trillion per year, increasingly worrying markets. Traditional buyers like foreign central banks are reducing their role in the Treasury market, while hedge funds have become major players, more price-sensitive and creating volatility. Joseph Brusuelas, chief economist at RSM, said debt becomes unsustainable when global financial markets say it does, which appears to be happening.
Source: Read the original article
