MACROECONOMICS

Geopolitical tensions - the straw that breaks the camel's back for the US public debt crisis?

War risks and disagreements in unbalanced fiscal policy could ignite a multi-year public debt crisis

The market is worried about the impact of recent geopolitical events on financial markets, the possibility of increasing inflation and recession risk. Viet Hustler analyzed these possibilities in last week's macroeconomics article. And this week, the Fed itself also warned of the impact of geopolitical events on financial markets.

However, amid the latest developments in global geopolitical risks, there is one variable that has been overlooked more, which is the possibility of a public debt explosion in the US due to recent geopolitical events.

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