These Charts Are Going To Move

By Staff of ReadTheTicker.com

Monday, October 31, 2022 12:49 PM EDT

these-charts-are-going-to-move

Interest rates must be cut down, because the debts are so high the financial ruin from high interest expense is very near.

US interest expense is near $750 BN, most of the US debt is based on bonds under 5 yrs, that is the front end of the yield curve, and the last thing the US wants is a collapse in tax revenue at the hands of a recession (say due in 2023).

Because when the tax revenue falls, and interest expense remains high (subject to inflation levels, the energy inflation will be the issue) the US ratio of tax revenue to interest expense becomes tighter and dangerously close to insolvency. What does this mean? Well think Argentinian economic woes.

Yes the US economy is headed into a Argentinian economic issues with US characteristics. Some sort of capping of interest rates is coming (yield curve control lite) in 2023 and this will lower the US dollar and expand the central bank balance sheets.

Chart 1 - The US 30 yr interest rate must come down.

(Click on image to enlarge)