Today if we have trillion
dollar deficits not only is the Federal Reserve not
monetizing any of it but the Federal Reserve is
actually contributing to the problem by
not rolling over the bonds that it holds
as claiming it's going to shrink its
balance sheet. Which means on top of the
trillion dollars that the Treasury would
need to sell to finance its deficits
it's gonna have to sell extra Treasuries
to repay the Fed what it's not rolling
over. So this is impossible, this is a
tidal wave of debt that's coming out of
the market.
Related trading instruments: 10-Year U.S. Treasuries, iShares Barclays 20+ Year Treasury Bond ETF (TLT)
