BofA Hartnett: US National Debt to Break $40 Trillion, Go Long Gold as Best Hedge Against Dollar Depreciation and Bond Collapse
Bank of America Chief Investment Strategist Michael Hartnett noted in his latest report, "Flow Show," that the total U.S. national debt is just $65 billion shy of $40 trillion and is expected to breach this threshold in the coming days, heading towards $50 trillion around 2029. He believes that in the current environment, going long on gold is the optimal strategy as it effectively hedges against dollar depreciation, bond collapse, and asset inflation. Hartnett also mentioned that U.S. debt interest payments have reached $1.4 trillion over the past 12 months, nearing the largest single expenditure for the federal government. Furthermore, the yield on the 30-year U.S. Treasury bond issued last week reached 5.126%, a 25-year high. Additionally, the surge in AI-related corporate bond issuance is crowding out long-term Treasury buyers, exacerbating pressure in the bond market.
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