“We are going to have low [interest] rates for a long time,” Jeff Kronthal, Managing Partner of KLS Diversified, told CNBC today.
“Ultimately we have had a huge increase in our debt over the last 10 years relative to our gross domestic product (GDP)” in the household sector, government sector and financial sector, Kronthal said.
For example, household debt to GDP has gone from 68 percent to 93 percent in the last decade.
"As we go through a cycle of bringing down that unsustainable debt," according to Kronthal, "it's very deflationaryand will restrain growth.”
The United States is looking more and more "like Japan,” he said.
But will the U.S. still be able to borrow at this level? Kronthal thinks the answer is "yes" because the net-assest-value of our country—relative to foreign investment in the US relative to our investments overseas—"is not a bad number" in relation to our GDP.
"The Strategy Session," hosted by David Faber and Gary Kaminsky, airs weekdays at Noon ET on CNBC.