14 lines
1.4 KiB
JSON
14 lines
1.4 KiB
JSON
{
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"HubID": "5189",
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"Date": "3/19/2025",
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"HubTags": [
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"External Platform Posts",
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"Future Map"
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],
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"Contacts": "",
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"Companies": "",
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"File": "",
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"Image": "5189__Image_URL.jpg",
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"Summary": "<p>Interest expense on federal debt has gone parabolic and it stands to increase a lot more because more than 75% of our debt will have to be refinanced at much higher interest rates in the next 4 years. How can we afford this? We cannot. Here's our main options: (1) Either the federal reserve buys the debt and issues cash, which skyrockets inflation; (2) the federal reserve drops rates to nothing, which means we might be able to refinance at low rates to keep interest expense as low as possible, but this could also skyrocket inflation; (3) No one buys the debt because they won't accept low rates on suck risky debt, which means we default, which means we cut government spending severely, which means we enter a serious recession/depression. Any or a combination of the above would be painful. Are there ways to thread this needle and be OK? Possibly. Are there other creative (even extreme) actions that our government will employ to help avert disaster? Most definitely (and we are already are heading down this path). I list them in this working paper on what we should expect for the future. </p><p> <a href=\"https://eddiesoehnel.com/ReckoningAndResurgenceSummary\">https://eddiesoehnel.com/ReckoningAndResurgenceSum...</a> </p>",
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"Notes": ""
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} |