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Rising Debts and Market Uncertainty
This chapter explores the troubling trend of increasing deficit spending in the American government's fiscal policies and its implications for future economic stability. It emphasizes the role of the Federal Reserve and the potential for significant market corrections as investors react to the limitations of monetary policy amidst rising inflation and national debt. The discussion provides a historical perspective on the debt-to-GDP ratio and highlights the risks posed by aggressive monetary strategies to both the bond market and broader financial landscape.