50 sats \ 0 replies \ @faithandcredit 1 Nov 2023 \ parent \ on: US Treasury Estimates Borrowing Additional $1.6 Trillion In Next 6 Months meta
If the government continues to borrow and spend, due to being in so much debt already and due to the amounts being so big now, in order for the new debt to be attractive for anyone to hold, it must be such high yield that it will suck liquidity from other asset classes and thus having a slowing effect on the economy. But lets see.
We are getting to a point where its either the government that grows or at least avoids shrinking or everyone else does. There is no more room for a growing economy and a growing government. Its one or the other from now on. Despite whatever financial voodoo they try. But lets see.