The bond market is an enigma of sorts. Back in 1980, the total public debt of the US Federal Government was just under $1 trillion. Fast forward to today, and The Federal Reserve reports that the total US Federal Government debt is about $20 trillion. (For a chart, click here.) State and local government debt have grown from about $330 billion to $3.1 billion. (For a chart, click here.) As large as these figures and growth rates might seem, they pale in comparison to the growth in total US dollar debt, both public and private. Total US debt securities and loans were just $4.5 trillion in 1980 and the Federal Reserve reports that it stood at $63.5 trillion at the end of 2016. (For a chart, click here.)
