Debt Growth Masks Financial Risks

The current issuance of US Treasury bonds is approximately half a trillion dollars weekly, but net borrowing results in a significantly lower figure. There is an assumption that the US government can always find lenders, creating a false sense of security. However, significant indicators such as the gold-oil ratio reflect troubling signs in the petrodollar system, highlighting potential vulnerabilities in the government’s financial health. Furthermore, energy remains a critical component of this system, stressing the importance of energy strategy in maintaining financial stability.