Rising interest rates and debt / deficit spell big trouble for US

Interest rates have to rise- they have been kept artificially low for years. Unfortunately, that will crease the interest payments on the debt. And our deficit spending is too high- currently around $.53T. We can't reduce the debt if we keep added to it.

So on to our call of the day, which comes from DoubleLine founder Jeff Gundlach, who has a dire warning on the U.S. fiscal situation.

“Here we are doing something that almost seems like a suicide mission,” he said in a fresh webcast about his DoubleLine Total Return Bond Fund. “We are increasing the the size of the deficit while we’re raising interest rates.”



“It’s pretty much unprecedented that we’re seeing this level debt expansion so late in an economic cycle,” Gundlach reportedly said, noting that both Fed fund-rates and the debt-to-GDP level are rising