The FED is printing treasury bills at an increasing pace

Det amerikanska finansdepartementet ger ut fler statsskuldväxlar i en accelererande takt. I en finanspolitisk dominansregim tvingas centralbanken att sänka räntorna för att hjälpa till att finansiera de offentliga underskotten. Eftersom CBO projicerar 5-7 procent underskott under de kommande årtiondena, är den enda verkliga hävstången att sänka hashtag#räntorna på statliga lån när regeringen fortsätter att flytta lån till frontend.

The US Treasury Department is issuing more Treasury bills at an accelerated pace. In a fiscal dominance regime, the central bank is forced to cut interest rates to help finance government deficits. With the CBO projecting 5-7 percent deficits in the coming decades, the only real leverage is to lower hashtag#interest rates on government borrowing as the government continues to shift borrowing to the front end.

It seems that gold and digital gold are already starting to anticipate this dynamic as lowering interest rates to support government borrowing will lead to currency weakness/monetary deterioration and higher inflation over time.

Source: LukeGromen, GraphFinancials, BofA, Craig Shapiro

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