U.S. Debt Spiral: What the Largest Money Managers in the World Are Saying

Will the U.S. enter a Debt Spiral? 

We did an interactive presentation two weeks ago with some of the largest money managers in the world (the long-term "smart money"). One of the multiple choice poll questions was how high they see 30-year U.S. Treasury rates (Tbonds) reaching over the next 4-years. The answers are compiled in the graphic.

Debt spirals are driven by perceptions - if investors believe there is a risk their loans won't be paid back, they demand higher interest rates to compensate them for the risk. That's what we see in the poll results.