Debt Crisis May Accelerate on Geopolitical Risks

26 October 2023

Governments ignore debt crisis signs. Despite inflation, the U.S. borrows heavily. Investors avoid sovereign bonds, causing central banks to buy and amplify inflation. U.S. debt rises sharply with impending maturities and global tensions. Trusting global dollar demand and the Fed’s adaptability is risky as countries cut U.S. Treasury holdings. Global fiscal imbalances and monetary debasement since 2009 diminish savings. Gold emerges as a more secure option than failing sovereign bonds.

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