I think this analysis is spot-on. There is not enough cash in the world to buy all that the US Treasury is forced to offer because of our cascading debt and deficit situation. The buyers must use leverage, hence their need to borrow in the repo market to pay for their purchases, Inevitably, this risks a severe spike in interest rates when these leveraged buyers say, "No mas." This doesn't even begin to consider the crowding-out effect all these government bonds will have on more useful economic investments.
Link: https://www.bloomberg.com/opinion/articles/2019-09-26/repo-meltdown-shows-budget-deficit-has-limits
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among many other things.
I'm not sure AOC is down with THAT... since I am an old white privileged male.
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Warning sign about ability to continue with monstrous deficits.
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But who knows?
I know gold is great...but it's already gone up so much. Maybe it will go up much more.
I really don’t know. Not too thrilled with gold as an investment. Gold mining shares are an inexact proxy for gold. You still have execution risk from management. They like to hedge the price...which makes sense as a business matter but not for an investor who wants exposure to the price of gold. Meanwhile, physical gold is expensive to hold (even in an etf).
Maybe some REITs?
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I agree the debt is significant, but it must be put in context with the credit history and assets of the borrower. We, overwhelmingly so, have a positive balance sheet, looking at it from several different directions. While a sudden run can happen and would cause temporary despair, we are far from being under water. Rather, a crisis would be good. We would call it Rahm time and finally do something about our debt and long-term liabilities.
This "runs" can be painful, and are unnecessary. We don't need to run trillion dollar deficits in a growing economy, nay, the Best Economy Ever(tm).