Yahoo Finance: The National Debt is Finally a Real-World Problem
Article by Rick Newman in Yahoo Finance
For years, budget hawks warned about the damaging effects of the mushrooming national debt, which now totals more than $33 trillion. But they had to speculate about how a debt crisis would materialize because it was only theoretical.
We’re now beginning to see the real-life effects of an unsustainable federal debt load. To finance trillions of dollars in spending beyond what incoming revenue can support, the US Treasury is now issuing more debt in the form of Treasury securities than global financial markets can readily absorb.
That forces the borrower — the US government — to pay higher interest rates, which in turn pushes up borrowing costs for ......