Will the US pay a price for its high fiscal deficitsf P

Author and investment expert worries that US bond markets could face their c Liz Truss, moment.

- Vikram Khanna

Investors treat America exceptionally, says best-selling author Ruchir Sharma, but there will be a limit to this. The key question is when they will pivot.

If any other country continues to run high fiscal deficits on a sustained basis, it gets punished, he points out. Bond markets revolt, withdrawing capital and sending currencies tumbling. "But if America runs high deficits, it leads to higher interest rates and sucks in more capital. When is this going to shift? That is the big question over the next few months. I can't believe it can go on," he says.