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n. Illinois | All of your observations are so on target.
What happens when the Feds decided their solution to the unsustainable debt is to ban cash all together just like they banned ownership of Gold in the 1930's and impose digital currencies upon us? Will they just decide that after the conversion that there is a massive taking on all deposits in excess of some set number? Will they just accelerate the expansion of the money supply to generate more fake GNP growth to grow the tax receipts.? so much is unknown and in some ways unknowable.
I looked last night and found that between the debt that matures in 2026 and the new debt that the treasury has to issue that there will be 10-12 trillion of debt issued. Of the debt that is just being rolled over roughly 8 trillion the avg rate of that maturing debt is 3.1% and the projected rates on that debt going forward assuming historical splits among the different maturities will be 4.6% or 150 BP higher which is another $120 billion more spending in 2026 just to service the interest vs what was spent in 2025. the new debt being issued in 2026 of roughly 3.5 trillion adds another $160 billion to the annual interest cost. This has the ability to get out of hand way faster than anyone wants to admit.
The Fed has already begun printing new fake money,
you know to keep liquidity from drying up just in case etc. | |
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Flexible money supply