The Market Ticker - What Happens WHEN You're Wrong?

Contemplate this, given that Mnuchin and the rest are all over the media today reprising “deficits don’t matter.”

You run up a huge national debt.  You do it because The Fed has suppressed interest rates for two decades, systematically, allowing you to pay the interest on same.

You think you can keep doing this forever, and every time you crank the debt higher The Fed will in turn crank rates lower.

You believe you can do this because the dollar is the world’s “reserve currency”, and besides, all the other central banks are doing it too.  The ECB and Japan, specifically, to name two.

It’s a nice fantasy.  It hasn’t blown up in your face yet.  Oh it got close in 2008, but it didn’t happen.

You think you can get away with…….

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