Posted on 04/19/2023 2:58:23 AM PDT by Kaiser8408a
The US is beginning to be out of time for agreeing on a debt limit increase. But you don’t need a fortune teller to tell you that Biden and McCarthy will eventually agree to increase the US debt limit because everyone in Washington DC love to borrow and spend money. Regardless, we are seeing the 1-year US Credit Default Swap (SR, EUR) rise above 100, higher than during the 2008/2009 financial crisis.
This is occuring as the US Treasury 10Y-2Y yield curve remains inverted and M2 Money growth has crashed.
But never fear! The Evil Hobbitt (aka, Janet Yellen) is still US Treasury Secretary. You know, the one who left interest rates too low for too long (TLFTL) as Federal Reserve Chair, then tightened as soon as Donald Trump was elected President.
(Excerpt) Read more at confoundedinterest.net ...
The world quite buying US 30 year bonds about 3 or 4 years ago. T=
“The lowest historical mortgage rates in history for 30-year FRMs were more recent than you might think. December 2020 saw mortgage rates hit 2.68%, according to Freddie Mac, due largely to the effects of COVID-19. The same goes for the lowest average, with an annual rate of 3.11% for 2020.”
https://www.rocketmortgage.com/learn/historical-mortgage-rates-30-year-fixed
Trump had no reason to hate the Federal Reserve in 2020.
I suggested small (<$20 billion) bills with a debt limit increase tied to the five-year like value of a spending cut or other reform.
We need to cap new money student loans:
$3000/first year
$6000/second-fourth years
$20000/undergraduate outstanding
$10000/year general graduate
$20000/year law school
$40000/year medical school
End new Parent Plus student loans
End limit exceptions on undergraduate loans
Top colleges have massive endowments. There’s no need to lend huge sums of money to students so they can attend a top notch college.
There are people with housing vouchers paying less than $200/month for apartments having a market value of around $1800/month.
Increase the tenant contribution required by 10% of the total rental amount. The tenant contribution required would go from say $200/month to $380/month.
The maximum PPACA premium subsidy is 98%, so on a $500/month policy some people have to pay $10/month to get health insurance.
Limit the maximum PPACA subsidy to 90%, so they would have to pay $50/month rather than $10/month.
There’s lots of money floating around.
Walmart shelves are often quite empty in the food section. Most other sections are now stocked.
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