Overview
- The debt-to-GDP ratio has climbed above 120% with U.S. output estimated near $30 trillion.
- Over 70% of federal debt is held domestically, with Japan, China and the United Kingdom the largest foreign holders.
- The debate over fiscal dominance has sharpened, with Janet Yellen and other analysts warning high borrowing could steer the Fed toward cheaper financing.
- Gold rose 60% in 2025 on currency-debasement fears, and analysts say bitcoin could benefit as the yield curve steepens with long-term yields rising.
- A Morgan Stanley report says stablecoin issuers have become notable buyers of short-term Treasuries, while record household debt and a 2026 commercial real-estate maturity wave heighten stress risks.