US Debt Nears $40T; BofA’s Hartnett Says Gold is Best Bet

Hartnett's call frames gold as the hedge of last resort when fiscal arithmetic turns self-reinforcing: debt service as the largest federal expense leaves less room for anything else, and a bearish steepening signals bondholders demanding more compensation. The AI debt issuance point matters most for crypto and RWA markets, since competing supply can crowd out Treasury demand and push yield-sensitive capital toward alternative stores of value. Whether that rotation actually shows up in flows, rather than just in strategist notes, is the open question.