Part 3/7:
The Impacts of Debt on the Economy
As the discussion progressed, focus shifted toward the financial markets, particularly the long-term interest rates which are crucial for understanding the overall economic environment. Experts observed that while some markets, like the NASDAQ, show certain resilience, the bond market should be the focal point. The $2 trillion federal budget deficit continues to pose a serious threat, as the costs associated with interest payments are now outstripping even the defense budget, making it the second-largest item after Social Security spending.