US Debt Situation Reaching Inflection Point As Foreign Bond Buying Declines
• US has enormous debt that could accelerate out of control as debt growth outpaces income growth • Needs to sell more bonds to foreign nations to fund deficits, but politics and social issues may discourage buying • 40% of debt is owned by foreigners - what happens if they don't want to buy US bonds? • Financially strong means earning more than you spend and having more assets than liabilities • US is nearing "inflection point" where debt situation risks becoming unmanageable