Short term US Government credit default swaps have more than tripled since April. If this were solely the result of debt ceiling debate, I wouldn’t be so worried.
I suspect it has more to do with the fact that US debt is forecast to exceed 155% of GDP by 2035 (see the report from the Peterson Institute for International Economics, or read about it here.) Even though the Peterson Institute’s solution is gutting Social Security and Medicare, I imagine their prediction is accurate.
Can’t be, you say? Those numbers are worse than Greece (102%) and Ireland (112%)!!!
Okay, I admit I shaded the truth a bit. Those are the best case data. The Peterson folks suggest the debt might actually climb to over 300% of GDP.