US (record) debt soars over $22 tln. Here's when the USD is likely to “flash red” warning.

Author: Eamonn Sheridan | Category: News

Comments on what to watch for if the USD drops as a warning government debt is at unsustainable levels,

  • currency would likely "flash red" should financing costs outstrip growth
  • and interest payments spur a "snowball" in the debt burden as a share of the economy
"Of the market variables that can best flag when policy is overreaching, the exchange rate is likely to be best at playing the role of 'canary' -- flagging …. excess"

Comments from Deutsche Bank, not an imminent warning but something to keep in the back of your mind. Applies to other countries also, of course. 


Comments on what to watch for if the USD drops as a warning government debt is at unsustainablelevels,
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