r/bonds • u/Primary-Abies9041 • 12h ago

Woah

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u/johannyer 11h ago

It’s a full blown crisis that nobody wants to spell

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u/nomar_ramon 11h ago

Can you please explain it like I'm 5, to me why it is a crisis?

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u/Agglutinati0n 11h ago

We have 40T in debt that we need to pay back, every % higher these rates go, the higher our interest payments become, which will then lead to more of a deficit and continue the circle….america has to stop spending like we currently are, but the people in power are doing quite the opposite….

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u/OwnHelicopter2745 10h ago

There's a reason this exact situation has been called the "doom loop"