Free Republic
Browse · Search
Bloggers & Personal
Topics · Post Article

Skip to comments.

Dammit, Janet! Janet Yellen Bets $2 Trillion That Rates Will Not Be Higher-For-Longer (Funds US At Short-end Of Curve)
Confounded Interest ^ | 01/27/2024 | Anthony B. Sanders

Posted on 01/27/2024 9:12:29 AM PST by Kaiser8408a

Dammit Janet! Stop borrowing money that we have to pay back!

Don’t forget! US Q4 GDP grew by $182.6 billion while Janet Yellen increased borrowing by $834 billion. (Public Debt By 4.5 Times GDP Growth).

In 2023, the Treasury added $2.6T to the national debt. While that number alone should be enough to scare anyone, the details reveal something even more concerning. $2T of it, or 77%, was financed entirely with short-term Treasury Bills maturing in less than a year. The chart below shows the debt issuance trend over the last 20 years. As shown, the Treasury typically relies on medium-term debt (2-10 Year Notes) to fund the budget deficit. 2023 was a massive change in standard procedure as shown by the giant light blue bar on the right of the chart.

Figure: 1 Year Over Year change in Debt

There is no doubt, everyone in Washington can do the simple math above and recognize the Fed cannot take a glide path down. The only option is for rates to come down. Yellen just bet $2T on that outcome.

Here are Janet Yellen, Joe Biden and Jay Powell doing “The Time Warp” fantasizing about the glory days of Marxism in the Soviet Union under Lenin and Stalin.

(Excerpt) Read more at confoundedinterest.net ...


TOPICS: Business/Economy; Food; Government; Politics
KEYWORDS:

1 posted on 01/27/2024 9:12:29 AM PST by Kaiser8408a
[ Post Reply | Private Reply | View Replies]

To: Kaiser8408a

Let’s not get too upset with Ms. Yellen. She wouldn’t be able to do a darn thing without the help of those wonderful people, the Republican members of Congress.


2 posted on 01/27/2024 9:15:56 AM PST by Leaning Right (The steal is real.)
[ Post Reply | Private Reply | To 1 | View Replies]

This article is a confection, not analysis. As usual.


3 posted on 01/27/2024 9:19:22 AM PST by SaxxonWoods (Are you ready for Black Lives MAGA? It's coming.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Kaiser8408a

“Don’t forget! US Q4 GDP grew by $182.6 billion while Janet Yellen increased borrowing by $834 billion. (Public Debt By 4.5 Times GDP Growth).”
*******************************************************************

Thus has been NORMALIZED and is now ROUTINE. It’s how (and the only way) that national debt increases as a percentage of national GDP.


4 posted on 01/27/2024 9:47:54 AM PST by House Atreides (I’m now ULTRA-MAGA. -PRO-MAX)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Leaning Right

Yeah, spending OTHER PEOPLE’s MONEY is more addictive than heroin and fentanyl.


5 posted on 01/27/2024 9:50:41 AM PST by Bobbyvotes
[ Post Reply | Private Reply | To 2 | View Replies]

To: Kaiser8408a

She is an idiot. I remember she once said inflation was “Transitory”


6 posted on 01/27/2024 11:04:21 AM PST by tennmountainman ( (“Less propaganda would be appreciated.” JimRob 12-2-2023 DITTO)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Kaiser8408a

She must be convinced a depression is coming. As a knee-jerk Keynesian, she is convinced (like her blood-brother Bernanke) that it is impossible to have a recession and inflation at the same time.

She’ll find out the hard way, like Samuelson, Solow, etc.


7 posted on 01/27/2024 11:15:50 AM PST by mywholebodyisaweapon ("Carthago Delenda Est")
[ Post Reply | Private Reply | To 1 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
Bloggers & Personal
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson