Alarming: Vance warns of the death spiral of US state debt!

Alarming: Vance warns of the death spiral of US state debt!

USA - in an alarm call in the middle of the US election campaign, J.D. Vance, Donald Trump's vice presidential candidate, in front of an impending “death spiral” at the bond market, which could falter the country's financial foundation. The terrifying reality: US state debt rapidly skyrocketed. Already in 2023 the debt service for the gigantic $ 35 trillion owes one of the largest expenditure of the US government-and forecasts fear that it could rise in 2024 to the second largest output position.

Vance expressed his concerns about the worrying development of the bond market compared to Tucker Carlson. He wondered whether international investors-those from globalization, the shift of production facilities to China and wars-could try to sabotage the Trump presidency by driving the bond interest on the height. "We are talking about $ 1.6 to $ 2 trillion of additional debts every year. And the low interest rates are the only reason why these debts are still wearable. An increase to 8 percent could lead to a massive spiral," he warned with urgent words.

rising interest rates and political consequences

vance made a shocking comparison to the failed political career by the former British Prime Minister Liz Truss, whose government fell into the strudel within a few days after an increase in interest. These warnings are not unfounded: JPMorgan boss Jamie Dimon has already pointed out the record debt of the United States several times. The term "death spiral" that Vance used was already mentioned in February by market experts like Nassim Taleb, who pointed out the dangers that could not bring an unadorned debt.

Critics like Steve Sosnick from Interactive Brokers complain that Vance stirs up fears without offering concrete solutions. "When a politician appeals to problems without solutions, it seems more like a panic manner," he said. And while Trump shines with tax cuts and military armament in the election campaign, experts and Nobel Prize for Economics are concerned about the potential risks of another Trump era for the US economy. The shadow of the debt crisis is heavy on political events.