Uncle Sam's Maxed-Out Credit Card

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We examine the debt ceiling crisis and its implications for investors, revealing how this political standoff reflects deeper problems in America's fiscal health that could impact global financial markets and your portfolio.

• Debt ceiling is a uniquely American concept (shared only with Denmark) limiting federal government borrowing
• Official national debt at $40 trillion excludes $25-30 trillion in unfunded Medicare, Medicaid, and Social Security liabilities
• Rising interest rates have increased annual debt servicing costs to nearly $1 trillion
• Foreign ownership of US debt includes Japan (12.7%), China (8.9%), UK, Luxembourg, and Cayman Islands
• Investors should consider maintaining cash reserves and diversifying beyond Treasuries
• Economic growth through improved immigration policies could help address the debt-to-GDP ratio
• Current political focus on tariffs is "puffery" distracting from real solutions to debt problems
• Per capita national debt now exceeds $106,000 for every American

Be careful out there as an investor - have a plan B and stay balanced, flexible and ready to adapt as economic conditions change.

Straight Talk for All - Nonsense for None


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