I don’t think we’ll get there.... at some point over the next yr the focus will turn to the remuneration of all this debt... Bundesbank, Fed, BoE will need recapitalisation... will taxes rise to balance govt budgets? With such a large portion of income being used by govt to pay the interest on this debt .... the only option out of MMT is to increase taxes and take liquidity from the system. Will a politician run on such a mandate?
I like the Top Pieces section.
Timely .... your piece from yesterday (The Final Bear Capitulates?) has made it into today’s TMH
Very much appreciated!
Excellent !!!!!
But Bonds are down and Stocks are down.....
Question for Bond Mkt: Can a Snake swallow an Elephant ??
When the US Debt becomes 40T or 50T and they need to fund 5-10T/ year,
what Higher Interest Rate will the Bond Mkt demand ???
This path is UNSUSTAINABLE..........
I don’t think we’ll get there.... at some point over the next yr the focus will turn to the remuneration of all this debt... Bundesbank, Fed, BoE will need recapitalisation... will taxes rise to balance govt budgets? With such a large portion of income being used by govt to pay the interest on this debt .... the only option out of MMT is to increase taxes and take liquidity from the system. Will a politician run on such a mandate?
Excellent! Thank you
Becoming a daily read for the 🐿️
True....no real alternatives
I guess we're Ok....
Thanks much
I feel better....
Agree, taxes will have to increase.
But no politician will say this.
40T is a stones throw away.
We'll be at 33T, by YE.
A lot of money in the system.... is there an alternative? Will there ever be a buyers strike on US debt?
Especially now that risk free rate offers >4% over the next 10yrs ... There is an Alternative to equities