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The USA is on the verge of raising the so-called debt cerling by 4 trillion dollars to 40 trillion to prevent a government shutdown. This would double the federal debt over the past eight years. It turns out that, despite all of DOGE's efforts, the attempt to consolidate public finances seems doomed to failure when the national debt-to-GDP ratio has reached over 80%, which in the US has shot far above that level.
In the end, as planned, the debt gap will probably have to be plugged with freshly imitated government bonds. If the bond market can no longer absorb these, the central bank will monetize them.
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21 sats \ 0 replies \ @OT 27 Mar
Too little too late.
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That's the consensus take, which means its probably wrong.
There's still a whole summer until we're up against it, that's a lot of time for turbulence in the context of all that has been happening.
The rescission word is being thrown around, Trump himself talking about much of the debt is illegitimate, other big chunks of the debt are already owned by federal agencies, the treasury has since Trump v1 been slowly taking back control from the fed, there's some big reveal around revenue on April 2, gold is being repatriated en masse, SBR, elimination of the debt ceiling entirely has been floated to break the cycle of negotiating it, the stablecoin part of the plan is being slow dripped...
All these cross-signals and slow-walked disclosures, anything that seems obvious is more than likely misdirection. Whatever happens, it's already been war gamed at the highest levels and the public won't see it coming.
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