Analysts predict: The United States will face its own "Bank of England" debt crisis before the election

ChainCatcher news, according to Bitcoin.com, Crescat Capital's macro analyst Otavio Costa stated that the U.S. economy is about to face problems ahead of the presidential election. He called attention to the deterioration of liquidity in the U.S. government securities index, which is at its worst level since the 2011 European debt crisis. More disturbingly, as the liquidity of U.S. Treasuries is being eroded, the U.S. has "one of the largest interest rate differentials in history" compared to other developed countries.

He believes that the U.S. economy is about to experience an "England Bank moment."

It is reported that what Otavio Costa referred to as the "England Bank" is the announcement by the UK of a £45 billion (over $57 billion) tax cut plan, which led to a sharp rise in government bond yields and raised concerns about the UK's debt sustainability in September 2022.