Reply to What would a US bond market crisis look like?

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Reply to "What would a US bond market crisis look like?"

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[quote=Anonymous]I was reading this article.  It is based on a similar model that parts of the U.S. govt use to model our debt:
https://budgetmodel.wharton.upenn.edu/issues/2023/10/6/when-does-federal-debt-reach-unsustainable-levels

Currently based on having govt 97% debt to GDP as of Q1 2025, we are about 20 years away from a debt default situation.  As we need to sell more and more bonds, the market will demand higher and higher interest rates to absorb the increased debt.  Eventually we will be issuing so much debt that there are not enough takers and then the debt defaults as we are no longer able to pay off the existing loans with new loans.

We already saw a spike in bond rates this spring that scared a lot of people.  The currently BB bill from congress will only make the situation worse.

My negative view is that Republicans will just look at this as a new wedge issue and/or use it as an excuse to reduce social security, increase retirement age, and increase taxes on social security.  This already occurred in other countries.[/quote]

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