My thesis on the fundamental problem with US debt is that there is so much now that it will take higher interest rates to get it all sold and those higher interest rates in turn will increase the deficit and lead to even more debt being issued. The Federal Reserve can’t realistically buy enough of the debt to make a difference without increasing the money supply to a point that inflation soars again. So we are, well, the f worded. According to a post in Zero Hedge, Goldman Sachs shares this perception. (ZH Post)
More good news for my home state of Mini-sorta, we led the nation in negative change in unemployment claims. The business climate here is incredibly hostile and tax-heavy and regulation heavy and businesses are leaving, closing plants and reducting employment. Don’t think we will the Incompetent Blowhard boasting on that any time soon.
