Huitong Network News——Alec Phillips, an analyst at the well-known investment bank Goldman Sachs, pointed out in a report on February 19 that the repayment cost of US treasury bonds is expected to rise sharply, because during the economic growth period, US borrowing expanded at the highest rate in history, and bond yields also continued to rise.

AlecPhillips, an analyst at the well-known investment bank Goldman Sachs, pointed out in a report on Monday (February 19) that the repayment cost of US Treasury bonds is expected to rise sharply, because during the economic growth period, US borrowing expanded at the highest rate in history, and at the same time, bond yields continued to rise.

Phillips believes that the US federal fiscal policy is entering uncharted territory. In the past, when the economy grew strongly and the debt burden increased, Congress responded by increasing taxes and cutting spending. This time, the opposite happened.

If current fiscal policies are extended, Goldman Sachs analysts expect that the ratio of net interest expenditure to GDP in the US will exceed the levels of the 1980s and early 1990s. The debt-to-GDP ratio is likely to exceed 100%, leaving the US fiscal in a worse position than it was in the 1940s or 1990s.