Image source: Pixabay

America' is currently running an annual deficit at 9% of GDP.

That's an extremely high percentage historically and we've practically never run a deficit this high with unemployment this low. We're essentially running a wartime deficit in a peacetime economy.

And a big part of this deficit is the ballooning interest cost we're paying on servicing our national debt -- as interest rates have spiked from near 0% at the start of last year to over 5.25% today.

And it doesn't help that tax receipts are falling vs last year.

As a country, we are bringing in less income and spending more on debt interest.

Today's guest, Luke Gromen, has been loudly warning that this dynamic is resulting in a sovereign debt crisis -- not just in the US, but in many other major nations around the world that are in the same boat.

What could such a crisis mean? And where are we in its timeline?

Video Length: 00:55:29

More By This Author:

As Yields Rise, Is This A Bad Time To Buy Bonds? Or One The Best?
No Real Fear On Wall Street? What The Options Market Is Really Telling Us
Bill Gross Is Bearish On Both Stocks And Bonds