The US has a big problem that no one wants to talk about…

Take a look at this image.

The American debt crisis is intensifying to levels we haven't seen in decades.

If you have any money invested, you need to read this:

About 26% of the US federal debt is maturing in the next 12 months.

If things were normal, this could be manageable.

But believe me, this is not normal.

We are facing one of the largest refinancing cliffs of this century.

And here’s the part that no one wants to hear…

THIS WILL DRAIN THE LIQUIDITY OF THE ENTIRE SYSTEM.

By comparison, the last peak was about 29% in 2020.

But back then? The Fed's interest rates were at 0%. Money was free.

Now, rates are around 3.75%.

This means that about US$ 10 TRILLION in debt needs to be refinanced at significantly higher rates in the next year.

The US Treasury is trying to hide the problem...

They have started issuing shorter-term bonds to minimize interest costs in the short term.

But this only postpones the problem.

Who is going to buy all this debt?

The market is pricing in two debt cuts this year, but that won't solve the supply problem.

So, the Treasury needs to flood the market with bonds.

This sucks liquidity from other assets around the world.

This includes:

– Stocks

– Cryptocurrencies

– Risk assets

– Literally anything that needs liquidity

I hope the huge supply of public debt limits the value of risk assets in the next 12 to 24 months.

I will keep you informed about the outcome.

I study the market daily to deliver the best possible content to you.

If you want to support.

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