In a report by ZeroHedge, US public debt has reached an unprecedented US$18.827T!
According to the report, it just 4 weeks, the US has accumulated a total of US$674B in just November alone!
Now for those who articulated that US will start a tightening cycle with interest rates increase every quarter, you better think again.
How can further increase in interest rates help improve the US debt payment and lower its debt burden?
It is a global economy where all the economies of the world are interconnected. How can the US economy power ahead amidst an interest rates increase, by claiming that the US economy is fully decoupled from the rest of the world?
Won't an increase in interest rates cause the US$ to spike further thereby hurting the exports of US made goods? Widen the trade deficit? Impose burden of debt among US corporations which went on a borrowing binge during the last few years? Affect US companies earnings and therefore future job growth?
To know that these are the high flying economists and analysts of big banks and financial institutions - is indeed a sad reflection of their poor acknowledgement of fundamentals.
And for all the shortfall, it is always easy to blame the Federal Reserve for failing to stop QE, but what about the banks and financial institutions and corporations' disproportionate increase in leverage relative to their earnings? The Federal Reserve has to shoulder some of the blame, but so must the greedy corporations too, in regard to the failure of QE.
The above is just my opinion.
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