Good work Bloomberg
It tells me that Treasury better grow inventories by about 3% over the next seven years, in the raw interpretation. What are Treasury inventories? Well, in this case, it is the ability to flow taxes toward Congress. These are Moody warnings.
Add this:
Although the federal government has increased its net borrowing by more than $3 trillion in the past two years, net interest costs dropped from $253 billion in 2008 to $197 billion in 2010 because of remarkably low interest rates. In CBO’s August projections, which assume that current laws governing spending and revenues remain the same, borrowing to finance projected deficits, in combination with an expected rise in interest rates, leads to a fourfold increase in net interest payments over the next 10 years, from $196 billion in 2010 to $778 billion in 2020. Larger deficits would result in even greater interest costs.
In a smooth world we might join Brad's Ten Year Club, do or die in 2020. In the quantum world, we get illiquidity sooner, sometime soon. And the trade comes which cannot be completed, and some major inventories in Treasury are going less than zero.
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