Wealthion · Monday, July 13, 2026
Chris Casey warns that the US could face a significant crisis, either a solvency crisis for the government or a banking crisis, if interest rates rise. He notes the nation's high debt-to-GDP ratio and recalls the 2021 banking crisis triggered by rate hikes, suggesting the Fed might be forced to reverse course if rates increase too rapidly.
“There's also the fact that we have a real solvency crisis, right? 39 trillion in debt, 32 trillion GDP.”
“It could be a solvency crisis. The US government.”
“It could be, um, it could be merely a banking crisis. We're only three years removed from a major banking crisis in this country, right? From solely because rates went up.”
“So I think if rates start creeping up, whether quickly than he wants, or even higher in magnitude, um, then he would pull back.”