A MarketWatch article said that for the first time ever, the U.S. national debt has crossed above the $31 trillion mark. Meanwhile, the Federal Reserve has pulled away from buying government debt and foreign investors’ interest in it is waning.
MarketWatch said that with the largest players out of the picture, U.S. Treasury bonds will need another reliable group of buyers. A Morgan Stanley strategist believes buyers will come forward, but the bigger question is the price at which Treasury bonds will be bought and sold by “marginal players.”
The absence of major buyers for the bonds is a source of worry. MarketWatch noted that the United Kingdom’s Treasury market has “experienced recent wild selloffs that have led to Bank of England interventions.”
The January 2019 issue of The Socionomist pointed to loss of interest in shrinking the U.S. national debt as optimism soared and stock prices rose higher. This optimism was a manifestation of a positive-mood extreme. To learn more about social mood’s influence on optimism/pessimism, read “The Wave Principle Delineates Phases of Social Caution and Ebullience.”
If you look closely, you can see patterns in social mood that help you predict social trends. Learn more with the Socionomics Premier Membership.