I know I beat on this repetitively and probably tiresomely, but to me it is clear that this is the biggest single threat to our country’s well-being. The amount of federal debt we have piled up and keep piling up has caused the Treasury Department to issue astounding amounts of both new and rollover bonds and bills. Ideally, they cause and manipulate rates to keep the interest that has to be paid on all this debt at a minimum. Because those interest payments are now a huge part of federal spending that only adds further to the annual deficit and the forever debt.
But all the evidence, particularly from long-term debt instrument auctions over the last year, indicates that the Federal Reserve and Treasury no longer control the interest rates on that debt. It has become controlled by supply and demand factors that empower the buyers to insist on higher rates. There is only so much federal debt that can be absorbed by the private sector or that the Fed can buy. In fact the Fed should be banned from buying US debt and interfering with the private market signals that would otherwise force Congress to address the deficit issue.
This Zero Hedge post describes the most recent 20-year Treasury bond auction. It was ugly. This is going to be a feature all year of these auctions. The buyers are demanding higher rates because they are concerned about the ultimate solvency of the US and our resolve to get spending under control. And these higher rates on US debt flow down to every other kind of debt. It means higher rates for businesses and consumers. The high rates discourage investment and purchasing. And they are here to stay for a very extended time. (ZH Post)
The result of every socialist government is bankruptcy. Followed by a raid of private property. Followed by a purge of citizens that can no longer be exploited.
It’s part of the plan to destroy Western civilization. Run up the debt so high that you can force a massive tax increase targeted at the middle class. You can say we have to raise taxes to “save democracy” or some other nonsense. The other alternative is to just directly raid the bank accounts of the citizens who didn’t vote for the regime. The uber-rich and the ruling class will be fine, but everyone else will be considerably poorer and dependent on the government.
Other components of this diabolical plan:
Open borders
Climate hysteria
DEI
Crime
Unequal justice
Rewriting of history
Weak foreign policy
The list goes on…
The list goes on…
Useless foreign wars and alliances
Control of social media
Censorship of competing viewpoints
Gender dysphoria
Indoctrination of young adults
Absence of productivity & a manufacturing base
Restricting agriculture and animal food production
Replacing traditional capitalism with financialization
Elimination of private transportation
Excessive environmental regulation
Elimination of fossil fuels
Loss of property rights
Gun confiscation
Adoption of digital currency
Well, all I can say is…glad I’m old and lived most my life in a much saner, decent, BETTER time than what humanity is now heading into! I find this incredibly sad! We also have no grandchildren to stress over in this upcoming corrupt current World. Our 2 daughters are heading into their 40’s soon, so hopefully they’ll miss the coming crap! Shame on those humans contributing to this downfall of decency, hopefully they will pay the price for destroying this beautiful world! Their leader, the one with the proverbial “pitchfork” must be gleeful as….well, Hell!