IMO its the US that's overextending itself because it has to maintain over 600 foreign bases, a global flotilla of subs, warships and aircraft carriers, airbourne nukes flying 24/7/365 all financed on borrowed/printed money; so much so that its Treasury is accruing debt at the rate of $2 trillion P/A.
This was tolerable while bond interest rates war sub 2% and printed USDs were exported thereby avoiding hyper-inflation.
Of course this war has changed everything; not alone has it increased US military/foreign aid spend, it has minimised the role of the USD in global trade and more than doubled the US Treasury 10 year bond interest rate to 4.5%
The US now owes $35 Trillion debt which at 10 year 4.5% bond interest rate is $1.5 Trillion P/A of interest alone without paying down any principle.
No wonder the price of Gold is at an all time high and China is considering dumping excess USD reserves and Treasuries.?
HC is primarily an ASX/Investment blog so you tell me (forget the wargaming propaganda) is this rate of US debt accrual sustainable? Just a simple yes/no answer will do with minimal justification.
