As I said, this is a Math problem. $31 Trillion As it rolls over, the FED is monetizing it. But as said, apparently above your pay grade. *** I believe there is an ignore button here someplace. Looking ...
With all due respect, gotta disagree here... the economic situation always has something to do with politics.
NO! Amazing so many people have difficulty with this. But that is likely part and parcel of the huge financial mess we are in, with all the subtle obfuscation that can be employed by those in charge. *** If there is a political facet to this, it is certainly the group of very poor thinkers (or readers ) who think deficits don't matter. Or that the ability to print the "Reserve Currency" absolves the nation from fiscal responsibility. *** History books are replete with narratives about nations who were reckless spenders. After this poor substitute for Statesmenship fails (Policy with Ukraine, China, Saudis, etc.), the DOD will take over. In 1941 that was fine, nearly everything was made domestically. A little different now, actually a ton different now. I think all Insulin (or nearly all) is imported from China. Much of this was done to placate the EPA, or other Agencies. Can you say "OOPs".
Who said annnything about deficits don't matter? Opps my bad deficits year to year don't matter much in the grand scheme of things. It is DEBT long term DEBT that matters most. Some can't keep the two D words straight.
%% LOL\i remember that party\ partly\mr Jim Cramer said ''BAC is goin' to $60 in a heartbeat'' Never made $60 Actually that crazy trend of used cars gappin' up\ i figured by then\ mr Powell was right+ much of inflation was temp.......................Same way always with new cars/bid \ask proves mr Powell is right from the get go, mostly.
The prediction by Jeff Gundlach of bond markets winning against the Fed will be his single largest career mistake. It seems markets square off against the Fed. It seems perfectly clearly communicated by the Fed that they won't cut rates this year.
Another scenario: The Fed keeps raising but general interest rates keep coming down the stock market goes up and the recession is mild. The most likely scenario is that no matter the outcome Gundlach will say he was right.__ Gundlach predictions:https://www.thinkadvisor.com/2022/1...ndlachs-economic-market-predictions-for-2023/
Sometimes I feel like I'm in the Twilight Zone. If the Fed was going to raise rates it should have already, not just talked about it? That is in the OP. But hasn't it had several huge rate increases? Are not tons of people mad at them for raising too much too fast, possibly sending the economy into a big recession/depression? If half the people are mad at them for not raising enough, and half for raising too much, sounds like they are probably doing about right LOL.
Who is mad? I don't surround myself with those types of people. Those are probably the same individuals who are armed to the teeth and would march in the street with their AR15s if the Fed had done nothing and inflation stood by now at 15 or 20%. Or 30% or 40%... You can't ever win as fed official now can you (unless you trade on insider information ;-)