USD MAGA
- Thread starter JackMorgan
- Start date
Why?
Because the government the fed knows this, and in the past charts when we have came to these levels it has always come back down, or else our economy would litteraly be ruined. That's why they ease up. As you can already see in some places gas and food prices are starting to go back down.
The only reason the $USD is so strong is that coupons on the Treasuries are going up (and Sovereigns around the world hope they keep going up).
But we are probably already at "max pain" (for interest expense on the Treasury income statement) beyond which higher rates can't be paid.
Although the U.S. Government says it is exempt from a lot of rules, it will not be exempt from the rules of Math.
The old high of 3.48% on June 14 has to hold.
Otherwise the FED will have to resume QE later this year just to "rollover" that debt.
That kind of action will eventually lead to hyperinflation. If you disagree why?
In regards to an out-of-control national debt, yes, inflation is definitely the answer.
But how much inflation is required?
And can that be administered safely by CBs?
But how much inflation is required?
And can that be administered safely by CBs?
There is no national debt. Piezoe says so.
laughs in 2020 election