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The ‘Ammo’ Problem Is Back – And It’s Worse Than Ever

The same worry, but now it's more acute.

The same worry, but now it's more acute.
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7 comments on “The ‘Ammo’ Problem Is Back – And It’s Worse Than Ever

  1. PaulMiller

    I wish Paul Volker were Fed chief again. He’d snuff out his cigar in the Orange Man’s face.

    • But snuffing it out would mean a recession, which would mean Trump losing his reelection bid and, eventually, going to jail, which means Ivanka would never be president. Not going to happen.

  2. Anonymous

    The discussion in the next downturn will include when CB bal sheets will pass GDP. It may be 20-25 years but it will be a topic discussed.

  3. MMT in this sense has been tried numerous times. The result has always been crippling debt, runaway inflation, and a lost generation economically. Typical of the US to think it might be an exception.

  4. H-Man, we spend $4.7TR and bring in $3.7TR so we sell govies to cover the difference $1TR. In order to sell the govies to finance the shortfall of $1TR, we now reduce the interest rate to attract more capital because everyone else in the world is cutting. So who are the buyers of this debt?

    • Last year these were the flows

      Foreign holders (official and private-sector) were net seller, shed $105 billion

      Federal Reserve, net seller, shed $204 billion

      US government entities (pension funds, Social Security, etc.), net buyers, increased holdings by $20 billion

      American banks (very large holders), hedge funds, pension funds, mutual funds, and other institutions along with individual investors in their brokerage accounts or at their accounts with the US Treasury were huge net buyers, while nearly everyone else was selling, increasing their holdings by $1.36 trillion over the 12-month period. These American entities combined owned the remainder of the US gross national debt, $7.5 trillion, or 34.4% of the total!

      ” So who are the buyers of this debt?” Answer: Americans

    • jamaican

      China.
      peak irony

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