The New CS Board

[jumanji0881]

How does it all end? -

It's Game-Over For The Fed - Expect A Monetary "Rug Pull" Soon...
https://www.zerohedge.com/economics/its-game-over-fed-expect-monetary-rug-pull-soon

My Comment: I'm expecting the national debt to reach $40Trillion by 2026. The debt cannot increase indefinitely. There will be serious consequences. At some point I expect rates to rise due to the risk of holding US debt. So, how does this unsustainable debt increase end? Does the US$ drop in response to the debt? And Biden claims to have educed the current deficit by $1.75Trillion (I just don't believe that). Biden keeps finding new ways to spend more money and increase the deficit. Got Gold?

Excerpt:
The Fed Has a Serious Problem This Time
The amount of federal debt is so extreme that even a return of interest rates to their historical average would mean paying an interest expense that would consume more than half of tax revenues. Interest expense would eclipse Social Security and defense spending and become the largest item in the federal budget.

Further, with price increases soaring to 40-year highs, a return to the historical average interest rate will not be enough to reign in inflation—not even close. A drastic rise in interest rates is needed—perhaps to 10% or higher. If that happened, it would mean that the US government is paying more for the interest expense than it takes in from taxes.

In short, the Federal Reserve is trapped.