Posted on 11/26/2023 9:51:54 PM PST by SeekAndFind
The 10-year Treasury yield set off roaring alarms about the U.S. budget when it surged to 5% last month. Now those warnings look like a fire drill. Federal Reserve rate hikes seem to be over for now, giving the bond market a reprieve and allowing a powerful S&P 500 rally to resume.
Enjoy it while it lasts. The next debt scare may be the real thing, and it could rock the U.S. economy and stock market.
Here's why: The Fed's historic turnabout, from enabling massive budget deficits to directing the sharpest rate hikes in 40 years, has seemingly broken the budget. Treasury market stress is almost certain to return.
The era of Fed quantitative easing and near-zero interest rates promoted carefree fiscal policies that led the U.S. to rack up $20 trillion in federal debt since 2008 financial crisis.
The Federal Reserve's fingerprints are all over the red ink. After the Fed sent more than $100 billion in interest on its bond portfolio to the Treasury in fiscal 2022, it had to halt those payments last year as bond prices fell. Having let inflation get out of the bag, an 8.7% cost-of-living adjustment stoked a $134 billion increase in Social Security checks.
Another roughly $100 billion went to FDIC bailouts, as banks like Silicon Valley Bank that loaded up on Treasuries when rates were ultralow became insolvent when Treasury yields surged.
(Excerpt) Read more at investors.com ...
of course we’re toast....even many freepers have had their blinders on...go listen to Greg mannarino...
many young people choose not to work, so they are not paying in to social security
the others were aborted
Actually it's hard to find a member of any party who doesn't.
But we brought in a host of illegals to fix it in the long term . In the short term of course. They are on welfare.
I don’t think they are here to work.
I work for a construction company.
One of my brothers owns another construction company.
Another brother owns another type of business.
They are not applying for work.
My brothers and I believe that they are an invading army.
p
It is pretty clear they have no intention of honoring future entitlement liabilities. And is the comfortable way to do that though the bad optics of letting seniors starve on the streets, or the comparatively good optics of a virus and subsequent vaccine side effects that they can claim to have no control over?
The “LOW UNEMPLOYMENT RATE” is FICTION
AND-—the same Government is accusing SBF OF COOKING THE BOOKS AT FTX.
Got to maintain the illusion of pedojoe's Potemkin economic miracle.
Our elected officials love to use Common Core math in their saving calculations.
When are you deficit chicken hawks going to embrace the import tariff?
“My brothers and I believe that they are an invading army.”
You’re correct.
Best be ready.
L
They don’t want to hear that. He’s their savior.
Because they don't have the money to pay them off. And they never will.
It is a Ponzi scheme.
Democrats and RINO’s. Democrats and RINO’s.
Nobody is coming to save us. Trump is the best of a really poor set of choices. The "Deep State" will not allow that choice either.
We are going to have a war that kicks over the game tables and turns out the lights. There will be economic collapse and a period chaos, followed by a period of absolute tyranny. The losers will die in large numbers, but somebody will eventually prevail. Pick a gang you like for whatever reason and join up with them.
See what happens. The survivors get to write the history and make the new rules.
They don’t need tax revenue to pay the debt. They can just print money.
Yes, it’s going to end in tears, but you can’t argue that they haven’t had a good run.
Starting from the Compromise of 1986 (GOP can limit taxation and mint legal tender gold coins, Dems can borrow without limit), it’s been 37 years of fiat money + credit inflation, no budgets that make sense, no restrictions on illegal immigration, now topped off by “stimulus payments”.
We need a different system of government, that this was possible in the first place invalidates what we have now.
Oh well, shouldn’t be long now.
Let's see how the spin/propaganda machine spits out the "narratives" when they (our government) hit the end of this road.
It will not end well.
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