With massive amounts of fiscal stimulus and financial bailouts, as well as costly healthcare reform programmes, US public sector debt is projected to rise by at least 40% in the next five years to over 100% of GDP from the current 70%. This has raised fears that the US may soon hit a debt wall, when no one would want to buy its Treasury debt. In such a case, US interest rates would soar and the loss of confidence in the US would lead to a US dollar crash. Similar concerns have arisen in the UK, where the HM Treasury estimates that its public debt, after rising from 30% of...
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