Fed Dead Redemption! US Treasury 10Y Yield Up 10 BPS As US Debt And Unfunded Liabilities Hits $204 TRILLION (50 BPS Rate Hike Expected At Fed’s 12/14 Meeting)

Confounded Interest ^ | 12/05/2022d | Anthony B. Sanders

[Kaiser8408a]

The start of a new week and the US Treasury 10-year yield is up 10 basis points, always a noteworthy change. And with it, the 30-year mortgage rate should climb.

Meanwhile, the political elite party in Washington DC as the US National Debt hit $31.4 TRILLION and unfunded liabilities (the amount that the political elites promised Americans) hit $173 TRILLION for a grand total of … $204 TRILLION.

Since Biden/Pelosi/Schumer are in a lame duck session with Republicans taking the House in January, let’s see if Republicans can halt the insanity in Washington DC.

Be that as it may, Fed Funds Futures are pointing at a 50 basis point rate hike at the December 14th FOMC meeting.

Seriously, how if The Federal Reserve going to cope with $204 TRILLION … and growing Federal debt AND unfunded liabilities?

[Kaiser8408a]

It is insane in DC. Government gone wild!!!! No naked pictures of Elizabeth Warren please!!!

[ClearCase_guy]

We cannot pay off that level of debt.
We cannot default on our debt.

One of these statements must be false.

[Dilbert San Diego]

How does 204 trillion dollars ever get paid ?

I’ve heard that the total value of all the companies on the New York stock exchanges somewhat in excess of 30 trillion dollars.

The total value of residential real estate in the United States is approximately $40 trillion dollars.

It’s hard to believe that if somehow government could somehow confiscate all of this property, it would only be a small down payment on the total amount needed to ever pay off these liabilities.

Many of us getting on in years may feel that we won’t live long enough to see how this ever gets resolved.

[Flick Lives]

A billion dollars is a number that is hard to visualize, never mind a trillion, or hundreds of trillions.

[Red Badger]

204 thousand billion.....................IS INSANE!...............

[Jonny7797]

Feds need to hit it with 75 point increase now then nothing for 6 months!!! 50 is not going to do it.

[OHPatriot]

204 Trillion Dollars may just be the current price of the Sovereignty of the United States. The Democrats are desperately looking for a buyer SO THEY CAN BE ENSURED OF THEIR CUT!!! We have been SOLD OUT by Democrats for decades.

My challenge, Name ONE just ONE POOR DEMOCRAT politician. Naming Stupid and Corrupt ones are easy. NAME a POOR ONE.

[yuleeyahoo]

Who cares as long as Zelensky gets billions more? It’s worth it bankrupting this country as long as the global elite have Swiss Chalets and don’t have to eat ze bugs. /s

[Flick Lives]

204 Trillion Dollars may just be the current price of the Sovereignty of the United States. The Democrats are desperately looking for a buyer SO THEY CAN BE ENSURED OF THEIR CUT!!! We have been SOLD OUT by Democrats for decades.

My challenge, Name ONE just ONE POOR DEMOCRAT politician. Naming Stupid and Corrupt ones are easy. NAME a POOR ONE.

—

FedGov is like an extra large version of FTX; a Ponzi scheme that can’t honor its obligations and cannot survive the scrutiny of a financial audit.

[amorphous]

The key to their scheme is continued printing:

Bottom scale, left to right, is the number of taxable transactions between those in the 22% income bracket (those with net income > 40k).

The government has over 50% of printed money obligated back to in in only four taxable transactions. You can see why there is a bank building one every corner. Imagine their take over billions of transactions even at a small percent take.

I think the plan all long is/was to cause periodic economic hardships which force people to part with real assets in exchange for printed dollars. We've seen this occur many times since income tax laws were enacted.

The last thing the TPTB want/need is for government to control its spending.

[cymbeline]

“We cannot pay off that level of debt. We cannot default on our debt.”

Option 3: We (our government) can create money.

[DugwayDuke]

Dilbert San Diego wrote: “How does 204 trillion dollars ever get paid ?”

You left off the value of future tax receipts.

[Sirius Lee]

How does 204 trillion dollars ever get paid ?

Why, with a couple of trillion dollar bills, silly.

[ClearCase_guy]

Option 3: We (our government) can create money.

But isn't that just Option 1? We pay off that $200T debt through inflation and taxation. A loaf of bread might cost you $100,000, which (I guess) seems expensive -- but surely you can afford it on your 9-figure salary.

Playing with monopoly money doesn't strike me as an actual fiscal policy. But I guess it worked for Zimbabwe.

[cymbeline]

“But isn’t that just Option 1?”

I’d say no, because it’s not the borrowers that are paying back the debt. It’s all of us.