Monday, January 15, 2024

Impending US Bond Challenges: Need To Roll Over $7 Trillion Amid Diminishing Liquidity Raises Concerns.

This year the US has to roll over 7 trillion USD in bonds and finance an annual deficit of around 2 trillion on top of it.

BRICS and Japan are nor going to buy US treasuries anymore.

Up to now, US bond auctions did not fail because financial institutions had enough excess reserves deposited at the federal reserve to adsorb newly issues treasuries.

See also Millennials face mounting financial challenges; rising costs and stagnant incomes jeopardize economic well-being.

Stlouisfed.org/series/RRPONTSYD. I agree with Rafi Faber, that when the reverse repo approaches zero, the shtf.

The FED has to restart QE, which would send the USD into a downward spiral, unless events occur which may drive foreign inverstors into the alleged save havens, the USD and US treasury bills/ bonds.

They need a catastrophic event to kick the can further down the road. Either another pandemia or another war.

https://citizenwatchreport.com/impending-us-bond-challenges-need-to-roll-over-7-trillion-amid-diminishing-liquidity-raises-concerns/ 

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