Rising Interest Rates Threaten to Detonate America's Debt Bomb as Deficit Balloons out of Control
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The U.S. federal deficit is ballooning at an alarming rate, projected to reach $3 trillion this fiscal year.
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Artificially low interest rates previously allowed unsustainable deficit spending, but now rising rates are lighting the "fuse" on America's debt bomb.
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Higher interest costs will drive debt higher in a vicious cycle as borrowing is needed to service existing debt.
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Investors are losing confidence in U.S. Treasuries as "risk-free" assets, further pushing up yields.
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Drastic spending cuts are needed immediately to slow the deficit growth and defer the debt crisis, or else yields could resemble those in Argentina.