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ReSolveRiffs with Michael Howell on Liquidity & its Multi-Dimensional Impacts on Markets and the Economy

Resolve Riffs Investment Podcast

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The Problem With Treasury Debt in the US and Europe

In Japan, interest rates on JGBs don't really matter because they're just paying higher interest payments to the Bank of Japan. But if you get to a point in the US and in Europe where we're paying 25% of our budget is going to interest payments, that is a massive subsidy to the private sector as well. So it becomes this self-perpetuating inflation spiral unless or until the Fed and the ECB own so much of the treasury market and the European sovereign bond market That would be an effective accounting transfer between one government entity and another government entity.

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