economy
America’s hegemonic glory is under threat
Along with excessive ‘guns and butter’ spending, that risk means long-term Treasuries are expensive
TL;DR
- Excessive spending on 'guns' (defense) and 'butter' (domestic programs) is identified as a risk factor.
- This risk impacts the valuation of long-term Treasuries.
- Long-term Treasury bonds are currently considered expensive due to these factors.