The New CS Board

[jumanji0881]

Deficits and rates -
True Japan has kept their rates low even though they have large deficits, but that's because the BOJ has been buying ALL of the new government debt issuance (JGBs) for several years now. Japan essentially does not have a bond market. I just don't think the Fed will be able to do that because it could easily double their current balance sheet of $4.5Trillion very quickly. Look at Italy's rates as they increase their deficits. There are a lot of countries that have artificially low rates due to CB QE and that will all reverse in the next recession with higher rates due to higher deficits.