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⚠️ The US Treasury is now in a state of interest rate captivity—
Interest payments already account for about 14% of federal spending, but the current yield on government bonds is only 3.7%.
What if it goes back to the 6% levels of the 1990s? The fiscal situation could blow up completely.
This is the so-called precursor to Fiscal Dominance: monetary policy is no longer independent, but has to revolve around fiscal sustainability.
The next new chairman, Hassett, advocates for rapid rate cuts, and the bond traders on Wall Street are getting extremely anxious.
Because in bond market logic, rapid r
View OriginalInterest payments already account for about 14% of federal spending, but the current yield on government bonds is only 3.7%.
What if it goes back to the 6% levels of the 1990s? The fiscal situation could blow up completely.
This is the so-called precursor to Fiscal Dominance: monetary policy is no longer independent, but has to revolve around fiscal sustainability.
The next new chairman, Hassett, advocates for rapid rate cuts, and the bond traders on Wall Street are getting extremely anxious.
Because in bond market logic, rapid r










