• From time to time, we hear deeply serious economists expound that the US is broke.
• Invariably, this involves discounting future entitlement obligations to present day dollars, which usually deliver intimidatingly large sums scaring the uninitiated.
• The curious thing is, if the US is broke, somebody should tell US bond market investors, as rates should rise dramatically if the ‘broke’ analysis is right.
• A less dramatic look at the issues shows that the markets have it right. The US is far from broke.

‘The U.S. Is Broke’ | Seeking Alpha