The U.S. Labor Market Throws Another Curveball with Peter Boockvar
Real Vision: Finance & Investing
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How the Fed Continues to Finance Itself Over Time With Much Higher Average Rates
How does the government continue to finance itself over time with much higher average rates? Great question. It's something that we've all been watching and it was back in the 1980s when people were growing about the rising US debts and deficits, but because the cost of financing didn't really matter. Now, I think that it does begin to matter and that the debts and deficits are getting to a point where it's harder and harder to ignore and it's getting more and more expensive to finance. What is right now a 7% budget deficit as a percent of GDP, even before the recession has begun, whereas historically it bottoms at five to 10% of the deficit at the depths of a
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