How do you run out of money when you are printing it? The current debt debate in the US should not be blindly dismissed as a short term issue. It will be navigated in the next few weeks but there will be no real solution. Rather the ingredients are being put in place, by successive imprudent monetary and fiscal settings, that will either result in the re-emergence of inflation (as growth appears) or heighten the risk of sovereign debt default. Either scenario points to higher bond yields at some point and the only questions we need to consider are when, why and by how much?

James Marlay

I am firmly of the opinion that people have underestimated the level of reliance the US economy has on current stimulus packages. The next round of negotiations on the debt ceiling may well highlight the difficulty the Fed faces in turning this money printing off.

Tom McKay

@adawes welcome - great to see you on the platform