Medium-to-long term thoughts on LT USTs, etc.

US debt sustainability and the resulting macroeconomic pressures define the current financial landscape, where 120% debt-to-GDP ratios severely constrain policy flexibility. While long-term Treasury bonds may offer nominal value, persistent dollar devaluation makes gold and Bitcoin more attractive for real returns. Raising interest rates to combat inflation proves counterproductive, as higher rates increase interest expenses, effectively injecting liquidity into the economy and fueling further consumption. Furthermore, structural shifts—such as the economic reliance on healthcare employment and global supply chain disruptions—act as secularly inflationary forces that defy traditional economic models. The dependence on consumer spending, which is heavily tied to equity market performance, leaves the system vulnerable to a debt crisis if policymakers fail to address these fundamental imbalances. Ultimately, the current fiscal path necessitates a shift toward front-end debt issuance and lower rates to avoid a catastrophic failure of the existing monetary framework.