'Game of chicken' has caused real worries

The US Senate voted in favor of the debt ceiling bill, which temporarily suspends the debt limit until early 2025 and imposes restrictions on spending for the fiscal years 2024 and 2025. But is the issue really resolved? Has the United States and the world truly entered a period of calm and stability?

The US dominates the global bond market with its national debt. A default would be catastrophic for both itself and the world. The US government is proposing to temporarily suspend the debt ceiling for two years, which means it could continue borrowing without the constraint of the debt limit until early 2025. But the solution postpones the contradiction without fundamentally solving the problem, and actually contributes to further increasing the US debt burden. Some analysts point out that the size of the US debt will reach an unprecedented level by early 2025, increasing the likelihood of systemic problems in the US economy.

In other words, even though the debt ceiling bill has been passed, the market's "real concerns" are just beginning.