A disgraceful milestone was reached this week when US government debt busted through the $20 trillion level and quickly went over $20.1 trillion.
Can $21 trillion, or $25 trillion, be far ahead? Why not $40 trillion, so our grandkids and their grandkids can be even more indebted to the Chinese and other countries that buy our debt but aren’t very nice to us.
This isn’t the kind of milestone you celebrate or even want noticed. So you didn’t hear a peep about it from the White House or from Congress, which is responsible for our wanton spending.
PG View: This massive — and growing — debt is going to require that rates be kept extraordinarily low and the dollar weak. With the Fed seemingly destined to start selling assets into that market, there are going to be some opposing forces in play, which could lead to market volatility.