Navigating U.S. Fiscal Challenges

This chapter explores the alarming state of U.S. fiscal policy, focusing on rising federal interest payments and the government’s need for substantial borrowing. It discusses the implications of decreasing foreign investment in U.S. treasuries, the struggles surrounding Social Security reforms, and concerns over the dollar's status as a reserve currency. Additionally, the chapter examines the current job market dynamics, the effects of quantitative easing and tightening, and the shifting landscape of treasury yields and investor preferences.