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Fiscal Forecast: Trouble in the U.S. Debt Market
The U.S. government is doing everything wrong with its finances. Its current debt management strategy is downright stupid. Are they trying to fabricate a fiscal crisis?
The U.S. government is doing everything wrong with its finances. Its current debt management strategy is downright stupid. Are they trying to fabricate a fiscal crisis?
A new economic forecast points with near certainty to a U.S. debt crisis in the near future.
Tensions between Southeast Asia and the European Union seem to be on the rise.
Several news sources have raised the volume about a possible systemwide banking crisis. I am not going to contribute to that. In fact, we should all be careful about determining whether or not such a crisis is at hand.
The Federal Reserve, eager to not let a good crisis go to waste, is using the SVB crisis to quietly turn on the money supply faucet again.
The Federal Reserve and the European Central Bank both foresee having to continue raising interest rates significantly to roll back inflation to 2%.
Some forecasters believe that inflation will persist for an extended period of time. I disagree, and if the signs of an inflation peak are as strong as I believe they are, then Europe could be out of this inflation episode before next summer.
The cold, hard truth embedded in all these numbers is this: going forward, the U.S. Treasury will have to continue to raise interest rates just to keep investors from selling American government debt.
The Federal Reserve announced its intention to continue to reduce its holdings of U.S. sovereign debt and has no plans to return to buying Treasury securities.
In the impassioned speech, Bannon called Biden an illegitimate president, characterized his backers as radical cultural Marxists who want to destroy the Republic, and insisted the Federal Reserve central bank be abolished.