At $40T, America's Debt Load Isn't Overwhelming

A perennial false fear reared its head again as America’s debt odometer crossed the $40 trillion mark last week. Meanwhile, Treasury Secretary Scott Bessent announced the buyback program for long-term US Treasury bonds will double in size next month—sparking further alarm that the government is worried over debt affordability and warnings that the plan failed when yields kept ticking up. So are Treasurys—the bedrock of the global financial system—in trouble now? We think not, and a closer look at the evidence shows why. Read Full Article »