They’re going to tell you the debt doesn’t matter right up until the moment when it does matter. From Matthew Piepenburg at vongreyerz.gold:
If you want to understand the direction of debt, rates, the USD, inflation, risk asset markets, gold and the US endgame, it might be better not to listen to the experts.
In fact, Johny Cash is a far better source…
Five Feet High & Rising
In a classic 1959 tune by Johny Cash, the singer asks: “How high’s the water mama?”
This question is then answered by a riff which chants, “she said it’s two feet high and risin.’”
And with each subsequent refrain, the water level goes to three feet, four feet and then five feet, “high and risin’.”
In short: An obvious flood.
And when it comes to debt in the land of the world reserve currency, Johny Cash may have something to teach Jerome Powell and the other DC children drowning the US (and its debt-soaked Dollar) into a slow but steady debt flood.
Boring?
I’ve often said that good journalism, like honest economics, is boring.
One has to understand “hard” indicators like bond yields (which move inversely to bond price) and the high-school level basics of supply and demand forces.
But as I’ve also said countless times, and will say countless times more: The bond market is THE thing, because bonds are all about DEBT.
If you understand bonds, and in particular, the Fed’s hidden (real) mandate to save Uncle Sam’s sovereign IOU’s from sinking in price, then you will be able to easily foresee (rather than date predict) the future of risk assets, gold, BTC, the USD and yes, inflation.
The complex truly is that simple.
Could this society handle Weimar solutions?
Colonel Jessup says NO.
That will be wild when dollars are like pennies or wallpapered up like Zimbabwe.
Make Rhodesia Great Again. (/s)