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Gustav: A few facts for your consideration.
Ratings Agency Moody's adjusted its outlook on US debt from 'stable' to 'negative' citing deficits and debt affordability. This follows a downgrade a few months ago from Fitch.
The US is running a soaring $1.7 trillion deficit. This is during "normal" times when the economy is supposedly fine.
The US Federal Reserve has been raising interest rates to attempt to tame the COVID-era inflation. During COVID the United States engaged in excessive money printing. However, they made the mistake of giving some of it to the public, which generated significant inflation. This is a mistake they are unlikely to repeat.
As the US Federal Reserve raises interest rates, it makes it increasingly difficult for the US Treasury to fund and roll over debt. Payments on interest alone have doubled and are beginning to approach $1 trillion per year. This is a rising portion of the US budget that produces zero benefit for its citizenry.
The most recent 30-Year Treasury auction went extremely poorly. Countries and financial institutions are indicating they are much less interested in holding US debt instruments. Primary Dealers are required to bid on US debt. It is possible to enter scenarios where debt issuance becomes tightly coupled, and the market ceases to function normally. This is an extremely brittle state for a financial system.
Each US citizen is now born into a system where they are in debt over $100k just for existing. Because of asset price inflation, they must incur crushing levels of debt to ever purchase a home. And if they wish to go to college, they are likely to pick up another crushing source of debt, which cannot even be discharged in bankruptcy.
For a global reserve currency, this is extremely difficult to escape. Will you flee to Euros or Yuan or Rubles? The trends are arguably as bad or worse.
There are alternatives. I suggest you take them before they begin closing the exits. I'm sure you can guess what my preferred Plan B is.
#planb #bitcoin #getoffofzero #keepstacking
#usdebt #debtslavery
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