The ingredients are coming together for a US financial crisis.

A dangerous view is creeping into the markets that the US has already gone so far down the path of a debt compound trap that it dare not raise interest rates to control inflation.

The US treasury has to roll over $6tn of debt every three months in an increasingly sceptical market, as well as issuing $2tn of new debt annually to cover the worst structural deficit in US peacetime history.

The critical point is that the whole US financial and fiscal system has never been so sensitive to short-term interest rates.

Kevin Warsh, the untested new Fed chairman, faces an invidious choice. Warsh struggled to articulate a coherent intellectual argument after the most recent policy meeting for why he was not raising rates. 

He could not explain how he intends to bring stubborn US inflation back towards the 2pc target when it is clearly going the other way.

Ambrose Evans-Pritchard Telegraph 11 August 2026

https://www.telegraph.co.uk/business/2026/08/11/ingredients-coming-together-us-fiscal-financial-crisis/ 

Paniken sprider sig lätt när tillgångar som ansågs vara riskfria (USD) inte längre är det.

https://englundmacro.blogspot.com/2026/08/paniken-sprider-sig-latt-nar-tillgangar.html


Voters like all this spending. They differ on priorities, but no one really wants to balance the budget. There is no desire to make the sacrifices and endure the pain it would take to change the course we are on. 

So, it won’t change, and debt will keep piling up.

John Mauldin 14 August 2026

https://www.mauldineconomics.com/frontlinethoughts/caught-in-a-debt-trap


Räntorna på statsskulden försvinner i den finansiella sektorns labyrinter. 

https://englundmacro.blogspot.com/2026/06/why-household-budget-myth-is-dangerous.html






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