The US public debt has reached 40 trillion US dollars. This has made the global market feel strongly uneasy and worried that the US debt crisis is about to unfold. Meanwhile, Tom Essaye, founder of Sevens Report Research, further warned that huge US debt may flatten the return on investment in stocks over the next ten years, because policymakers may not solve the debt problem through tax increases or spending cuts, but may try to solve the borrowing problem through inflation. This practice is essentially a “devaluation transaction” hotly discussed in the market. One direct result is that treasury bond yields will rise sharply. At the same time, the stock market's attractiveness to investors has declined due to rising risk-free returns. Furthermore, high data and continued inflation will erode the real earnings of stocks. Essaye said that between 1966 and 1981, there was no change in the nominal value of investors' shares, but high inflation meant that the actual value of the portfolio actually fell by about 50%, which is the real risk for the next ten years.

The US public debt has reached 40 trillion US dollars. This has made the global market feel strongly uneasy and worried that the US debt crisis is about to unfold. Meanwhile, Tom Essaye, founder of Sevens Report Research, further warned that huge US debt may flatten the return on investment in stocks over the next ten years, because policymakers may not solve the debt problem through tax increases or spending cuts, but may try to solve the borrowing problem through inflation. This practice is essentially a “depreciation transaction” hotly discussed in the market. One direct result is that treasury bond yields will rise sharply. At the same time, the stock market's attractiveness to investors has declined due to rising risk-free returns. Furthermore, high data and continued inflation will erode the real earnings of stocks. Essaye said that between 1966 and 1981, there was no change in the nominal value of investors' shares, but high inflation meant that the actual value of the portfolio actually fell by about 50%, which is the real risk for the next ten years.