The American economic community is sounding the alarm on a thorny long-term issue—the systemic risks brought about by uncontrolled federal debt levels.

The core hidden danger lies in the so-called "fiscal dominance": when debt accumulates to a certain point, the central bank is forced to maintain low interest rates to reduce the government's debt repayment pressure, which directly weakens its ability to control inflation. Former Federal Reserve Chair and former Treasury Secretary Janet Yellen admitted at the American Economic Association annual meeting that the preconditions for this "fiscal dominance" are continuously strengthening.

Numbers don't lie. The latest estimate from the Congressional Budget Office shows that this year's US federal deficit will surpass $1.9 trillion, with the debt-to-GDP ratio approaching 100%. Even more concerning, it is expected that this ratio will continue to rise over the next decade to about 118%.

Particularly noteworthy is that the current US President has publicly pressured the Federal Reserve to cut interest rates, aiming to ease the government's debt burden. Former Cleveland Fed President Mester pointed out the most worrying aspect—top government officials seem to lack sufficient awareness of the seriousness of these risks. "While previous administrations ultimately did not responsibly address the deficit issue, at least they knew they were on the edge of a cliff. The current situation is that decision-makers may not even realize how severe the consequences could be."

The debt dilemma is closely related to the low-interest environment, which has profound implications for asset pricing and major asset allocation trends. Whether in equity, bond markets, or alternative assets, no sector is immune. Some observers believe that this situation could eventually trigger some form of crisis, thereby prompting policy adjustments.