When Will US Debt Become a Problem?

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Our View

The ES is on a tear to the upside and is doing the same thing it's been doing since its October low: Make a new high, pullback, followed by some back-and-fill, and then rally to new highs. 

I get it, the Fed has supplied so much liquidity with all the trillions it has printed over the years that now the ES barely pulls back. Every piece of bad news is bought — it doesn't matter if it's Putin threatening nuclear armageddon, millions of immigrants crossing our border, tighter credit, inflation and volatile politics or mounting fiscal burden. 

The question is, how long can this go on? 

The debt load of the US is growing at an astounding pace — higher rates aren’t helping — and in recent months, it has increased to about $1 trillion every 100 days. I could take some of this information off various posts on the internet, but you can read it yourself. If it stays like that and doesn't increase over the next 10 years, it would equal $36.5 trillion.

This is unsustainable — especially when you look at the current debt of $34.4 trillion — and if you look at the deficit tracker you can see how this will blow up at some point. 

I know... I'm always pessimistic but who isn't?