Bigworld, >> $1.2 Trillion in interest on our debt <<
Yes, and as time goes on the Fed's policy options will be increasingly boxed in. They can't leave % rates high for too long since the huge national debt quickly becomes deadly.
The high US rates also are bad for emerging countries that have linked themselves to the US dollar, making them more likely to leave the fold and move toward BRICS. The high % rates will also lead to US / global recession, so Powell declares victory on inflation and starts cutting % rates. While the official inflation numbers have come down, to what extent is this data being massaged? We know the official inflation and employment numbers have been manipulated for decades.
The bigger picture --> what happens when the US debt moves past 40 tril toward $50 tril? I'm figuring $50 tril is the tipping point where global confidence in the US dollar can really crumble. So in ~ 5 years investors will need to be out of bonds and mainly in hard asset areas.
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