Rising Treasury Yields Are Making the U.S. Debt Problem More Dangerous, and Ray Dalio Warns the Consequences...
The U.S. debt problem gets more dangerous every time Treasury yields rise.
The issue is not just how much America owes. It is how much that debt costs to service.
When yields stay higher, Washington borrows and refinances maturing debt at higher rates, pushing federal interest costs up over time.
Higher yields also raise borrowing costs across the economy and can pressure stocks and crypto as bonds offer more competitive returns.
Ray Dalio warns that mounting debt burdens could eventually lead policymakers to turn to money printing and policies that suppress interest rates, eroding the dollar's purchasing power.
In that scenario, bondholders could be repaid in full, but receive dollars worth less.
The consequences of America's debt problem may arrive well before the next generation inherits the bill.
Dalio's warning: "It's gonna happen faster than that."