- US debt problems will be felt in the coming years, Jeffrey Gundlach wrote for The Economist.
- Higher interest rates and a recession amplify US borrowing costs.
- By 2034, debt servicing could consume 45% of tax revenue, he estimates.
America must curb its borrowing binge before it “breaks the bank,” Jeffrey Gundlach said.
“Under the next few presidential administrations, the national debt will mushroom beyond the government’s ability service it, perhaps even beyond the credulity of the country’s creditors,” he wrote in The Economist. “In the coming years expect dollar debasement, debt restructuring or both.”
The DoubleLine Capital founder is among a group of Wall Street heavy hitters raising alarm over a coming debt crisis. Anxiety is mounting amid Washington’s widening federal deficit of $1.83 trillion, or 6% of GDP. Others sounding the alarm include hedge fund icon Ray Dalio.
Bearish forecasters note…
