NewsBite

Opinion

Sam Wylie

Unsustainable US debt is now looming on the horizon

Neither Biden nor Trump will reassure bond investors that America can cure its spending habits in time to prevent a crisis.

The global bond market is watching the turmoil in the US Congress very closely. With Republicans in the House of Representatives unable to choose a leader, more and more bond market investors are concluding that US politics-as-usual is incapable of defusing America’s ticking debt bomb. Only a major bond market crisis will shock the US polity into making the tough decisions needed to right America’s fiscal ship.

The toppling of House speaker Kevin McCarthy, centre left, on October 3 has triggered the latest bout of instability in Washington.  Bloomberg

Loading...
Sam Wylie is a principal fellow of the Melbourne Business School

Read More

Latest In Economy

Fetching latest articles

Most Viewed In Policy

    Original URL: https://www.afr.com/policy/economy/unsustainable-us-debt-is-now-looming-on-the-horizon-20231015-p5ecbb