On January 31st, I will give a talk titled “The National Debt: Myths and Reality” to QWAFAFEW in Denver. QWAFAFEW is the Quantitative Work Alliance for Applied Finance, Education and Wisdom. It is an informal organization of quantitatively oriented professionals in various aspects of financial services (primarily investment management).
Here’s a summary:
The national debt dominates the news, but it is shrouded in misconceptions. A close examination of the debt as a bond portfolio can help to separate the myths from the surprising reality. We will consider how the debt is managed, the role played by the Fed, and the risks that the debt could pose.