DC collects fairly nutty politicians.

This is the cost of their interest expenses as they when on a borrowing spree, starting with Reagan. nearly 5% of the economy (blue line)  devoted to paying for Reagan's credit card binge. It is a miracle Bill Clinton pulled us out of the nightmare.

The red line peak in 1974 is Nixon's sudden inflation shock when he exited Brenton Woods. Carter got that mostly under control, but kept driving up interest costs as the ten year yield started to jump up.

Those were nutty times and Republicans seem to be horrible dumbshits regarding the economy.

Now we are dealing with this, the rise in federal spending once again. This is the recession cycle when DC politicians shove all the costs out to the end of the presidential terms (Blue line). And as expected the ten year yield jumps up, (red line).  California and New York are going to have the same rise in expenses, it is mostly Obamacare.

So Janet will be selling portfolio this year to help cover interest expense.  The Fed cannot raise rates as that means losses on the sales. So we are gonna have deflation. Taxes will not hold up under deflation and we now have predictions of recession.

Soon we have to redo the monetary regime and Obama is going to need a clue, as due the Republicans. But the Fed is protecting its turf and hiding the new research.  My oh my what a mess.