Holiday Market Turmoil: U.S. Treasury Risks Default as Debt Soars. The Shocking Truth Behind.

The U.S. Treasury’s announcement of an unprecedented cash reserve drawdown highlights the nation's deepening fiscal distress as 2024 comes to an end. With national debt exceeding $36 trillion, nearly 35% of global debt, concerns about a looming U.S. default are growing. Treasury Secretary Janet Yellen has warned of the rising debt ceiling and escalating borrowing costs, which could trigger a bond market crisis and inflationary pressures. The financial strain is compounded by rising bond yields, with the 10-year yield nearing 4.6%, signaling higher borrowing costs for consumers and businesses alike.

Key economic policies, including the CHIPS and Science Act and the Inflation Reduction Act, have been criticized for fueling inflation, while former President Trump’s potential return to office raises questions about increased borrowing and the risks of a global trade war. The U.S. deficit, rooted in essential spending like Social Security and healthcare, remains a major challenge, with no clear path to reduce expenditures without systemic risks.

Internationally, confidence in U.S. bonds is waning, as foreign central banks shift towards gold reserves, reducing their U.S. debt holdings from 35% to 20%. The global financial system faces unprecedented risks, with a potential U.S. default threatening to destabilize global markets. Rising bond yields are increasing living costs, squeezing households, and slowing economic growth. Higher rates are also pressuring equity markets, with U.S. stocks at historically high valuations and at risk of a major correction.

This video explores the intricate dynamics of U.S. fiscal policies, rising debt, and their implications for the global economy. Learn how current economic strategies could reshape financial markets and what it means for the average consumer.