Economists like Nouriel Roubini are starting to fret about a US debt crisis as interest rates rise – here’s why it’s the latest issue rattling markets

MarketsInsider/George Glover/12-11-2022

“Nouriel Roubini raised the alarm last week, warning that the steep rise in rates could erode the ability of households and companies to meet their loan repayment commitments. He said that could trigger “‘he mother of all economic crises.'”

USAGOLD note: This article does not mention the most dangerous aspect of the developing debt crisis – interest payments on the US federal debt. That expenditure now stands at $475 billion in fiscal year 2022 and is destined to go higher as interest rates rise. By way of perspective, the expenditure on national defense is $767 billion.