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 ...
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.
This article is a confection, not analysis. As usual.
“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).”
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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.
Yeah, spending OTHER PEOPLE’s MONEY is more addictive than heroin and fentanyl.
She is an idiot. I remember she once said inflation was “Transitory”
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.
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