Published On Nov 28, 2023
Prof. Congdon asks the question “who will want to hold US Treasuries if and when the ratio of Federal debt to GDP exceeds 150% and starts approaching 200%?”. Furthermore, there is no modern precedent for domestic non-banks owning US Treasuries of much more than 50% of GDP - and while it could happen - a ratio much above 50% will cause strain in financial markets.
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