Top experts foresee US debt crisis due to rising deficits and debt levels, impacting economy
From Yahoo Finance: 2025-06-15 13:15:00
Top experts are warning of a potential debt crisis in the US, with concerns over rising government debt. Ray Dalio, Ken Rogoff, and Niall Ferguson all express worry about the situation, particularly in light of Trump’s tax and spending bill adding trillions to the budget deficit. Investors are feeling more comfortable, but experts remain cautious.
Ray Dalio highlights three key factors affecting US debt outlook: rising interest payments, debt selling vs. demand, and central bank printing. He warns of an impending debt crisis if signs of deterioration continue. To prevent a crisis, Dalio suggests reducing the budget deficit to stimulate the economy.
Ken Rogoff predicts a debt crisis within the next four to five years due to growing deficits and debt levels. He warns that a crisis could result in inflation spikes and economic shocks, impacting bond markets. Rogoff stresses the need for higher interest rates and adjustments to manage the debt.
Niall Ferguson raises concerns about a potential crisis triggered by growing debt and a military challenge. He notes that the US now spends more on interest payments than defense, violating “Ferguson’s Law.” The US’s status as a global power may be at risk if fiscal policies do not address the debt challenges adequately.
Read more at Yahoo Finance: 3 top experts detail how they see a possible US debt crisis unfolding