Having $30T of #debt (us gov) means each 1% increase ultimately adds $300b to the yearly interest expense. So ~3.3% rise in rates adds $1T of interest. US Gov already runs >$1T and when they trigger another recession it will be $2T in a hurry as #tax revenue falls
#Powell and the #fomc are bullshit boogeymen to people that understand the reality of the situation. They will print and print and print, because they must. Trillions of new dollars flooding into the real economy each year. The fomc will continue to grow its balance sheet
Ignore the noise and short term vol when these guys speak. Empty words. They are in a box and we all know what they will do to avoid bank failures and cascading debt defaults. They are cruelly shaking the tree and punishing the most vulnerable amongst us.
Get long #commodity stocks because we have absolutely need #resources to drive the real #economy
A decade of underinvestment will continue to cause shortages and price rises. Raising interest rates only makes the problem worse.
A decade of underinvestment will continue to cause shortages and price rises. Raising interest rates only makes the problem worse.
There is only one solution. Higher prices. And for many commodities, much higher prices. That alone will encourage investment and a supply response. Don’t let these crooks sucker you.
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