Replying to Avatar QW

Powell signals last cut which everyone predicted.

Fed / Government can’t keep these rates up with their sovereign debt levels.

Next pivot will signal the beginning of the doom loop. 🌀

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Frank "RICO" Blunt 2y ago

"Fed / Government can’t keep these rates up with their sovereign debt levels."

why?

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QW 2y ago

Interest rate burden already passed defense spending.

Government continues to spend into an election year.

Something will break. That’s my prediction. They are already racking up backstops with the BTFP

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Frank "RICO" Blunt 2y ago

what breaks is inflation and the economy and society

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The Servile Statist 2y ago

As they roll over old, low-rate debt to new, high-rate debt, their interest payments balloon, leading to even more debt issuance to pay the extra interest on the prior debt. That means finding buyers for new debt today. (which, GL)

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Frank "RICO" Blunt 2y ago

are you talking about us gov debt in us dollars?