Informative as always. I’m a little confused by the last paragraph though. Can you elaborate a little more on how they’re pulling down inflation and treasury yields? I thought those were economy stimulating things.
Discussion
I believe he is saying they want to break things such that the Fed has to respond. Economic weakness/recession may prompt them to cut rates in response to stimulate the economy, which would help them roll over the debt.
How am I doing Doc?
Ah ok, that seems to make sense. Thanks!
He's talking about long-term debts. The current situation might cause a recession -> lower expectation in the future -> lower interest rates -> lower debt payments.