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Monday, July 12, 2010

U.S.A.: Uncontrollable Sovereign-debt Actions

If the United States are not careful they will have the largest sovereign debt problem the world has evern seen. Europe's own problems have caused U.S. government debt to hit absurdly low yields, but soon enough investors will lose confidence in the U.S. debt market and realize how dangerous this market has become. In the foreseeable future interest payments on debt will exceed defense spending in the country, which is a feat in itself, and will undoubtably cause investors to realize the problems in this market. If changes are not made to the mounting debt problem in the U.S., Ben Bernanke will be looking more like a chump than the champ he was after the financial meltdown. If you can wait it out. Betting against U.S. Treasuries seems like an unparalleled investment.

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