Structural debasement.
The market begged for a hawkish Fed. Got the hike. Long end yields dropped. 📉
A week later it's rising. Now it's doing the math. 📈
Higher rates = bigger interest bill = more borrowing = more money creation.
Be careful what you wish for.
PS Current public debt at ~$40T + > $1T interest expense (at a higher rate)
~122% debt/gdp
Looks like they need a BIGGER boat. Structural debasement of fiat. Raising rates = raises the cost of money and borrowing. Now they need more of the "higher cost" money to pay for the higher costs. 🔁
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