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Mohamed A. El-Erian, president at Queens' College, University of Cambridge, shares insights from John Plender's FT column about mounting risks in U.S. public debt.
He highlights that Treasury funding is becoming increasingly dependent on shorter-term securities, which creates persistent rollover risk as U.S. public debt approaches its highest-ever level.
El-Erian previously noted the ongoing tug-of-war between U.S. debt growth and economic productivity in his analysis of fiscal fundamentals. He also reported that by the end of 2025, gold's share in official global reserves is set to exceed both the euro and U.S. Treasuries, according to recent central bank data. These observations follow continuing attention on the structure and sustainability of U.S. government debt.