Peter mentions something that I have been thinking.
The Fed Res says they are going to sell $95 billion a month of Treasuries and mortgage-backed securities they have on their books (see: What Has Caused the 2021-2022 Inflation in the USA? A Shocking $8.5 trillion of US Treasuries and Mortgage-Backed Securities on the Federal Reserve Balance Sheet. Will Quantitative Tightening Ever Happen?). That means the Fed Res will dump $59.4 billion a month of US Treasuries on the market. Those Treasuries will compete with new issuance of Treasuries Congress will need to float to fund itself.
Fed Res bankers also claim they will raise interest rates 50 basis points (0.5%) each month in May and June followed by 25 basis points raises each month to the end of the year. That means borrowing will become more expensive for Congress.
The economic depression that began in 2008, which Federal Reserve bankers papered over all the way through 2018, and which they resumed in 2020 owing to Covid-19 lock downs by politicians is going to be seen by Americans at long last.
Congress will need to cut spending because financing is going to get more expensive for Congress. Yet, ever more people will need welfare from Congress.
Americans are sitting in a mess. Few realize this truth. It will be a known as the Super Depression.
For proof that you have been living in an economic depression, see:
- Booming Biden Economy? Oh Really? Likely the USA Has Remained in Economic Depression Since 2008.
- TRUE GDP GREW 1.9% IN Q1 2019. OH AND THE TRUMP RECESSION HAS COME AND GONE ALREADY. [27-Jun-2019]
- ECONOMIC EXPANSION? RECOVERY? SHUT UP ALREADY AND STOP LYING ABOUT ANY RECOVERY.MUCH LESS ANY EXPANSION. [13-Apr-2015]
Gab It
