Most countries have accumulated “huge debt loads that weigh on the entire system,” according to BlackRock Vice Chairman Philipp Hildebrand, who said there's a sense that rates are edging up. Hildebrand added that "sustained higher growth would be the best way to deal with the debt and deficit problems in combination with reasonable budgetary policy”. In an interview on The Pulse with Francine Lacqua, Hildebrand said "the last thing you want is questions around the sanctity of the sovereign signature”. When Moody’s Ratings downgraded the US in the middle of May — becoming the last of the three big credit rating companies to lower its ratings from the highest level — it warned that the US's fiscal deficit, government debt and interest burden would all rise over the coming years, the latest sign of growing fears about Washington’s fiscal position. (Source: Bloomberg)
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