Analyst predicts: US will face its own 'Bank of England' debt crisis before election

According to Bitcoin.com, Otavio Costa, a macro analyst at Crescat Capital, states that the US economy is about to face problems before the presidential election. He calls for attention to the deterioration of liquidity in the US government securities index, which is at its worst level since the European debt crisis in 2011. Even more concerning is that as US Treasury liquidity is eroded, the US has "one of the largest historical interest rate differentials with other developed economies."He believes that the US economy is about to experience an "Bank of England moment."The "Bank of England moment" referred to by Otavio Costa is when the UK announced a £45 billion (over $57 billion) tax cut plan, which led to a sharp rise in bond yields and raised concerns about the sustainability of UK debt in September 2022.