CNBC/Jeff Cox
“The recent debt deal struck between the White House and Congress virtually guarantees trillion-dollar deficits well into the future as well as continued acceleration of the government’s collective IOU, which is now at $22.3 trillion.”
USAGOLD note: Ponder for a moment the implications of trillion dollar deficits in the context of the trade war and China’s absence as a buyer of U.S. Treasuries. Who wil finance the public debts of the future? And how much buyer interest will there be as yields continue to descend toward zero? “Leading central banks,” says Financial Times, “now own a fifth of their governments’ total debt” – a circumstance that leaves one final question: Can governments survive without quantitative easing?
Repost from 8-15-2019
