A little high but within bounds for a long term Euler pass thru, but that also requires a 15 year tax and sequester. Trump and AOC are not doing a tax and sequester. We might be hashing this out during Blue Bar. We can't do 1% on the one year as long as Congress has no liquidity, discretionary spending. A contradiction.
The correct solution is the swap, the Fed gets 15 year contractual rights to attract large government agencies as clients, and otherwise allow congested entry and exit. The Fed is free to grant a 15 year liquidity pulse, the contract to default on 8T.
Traders need to keep this deal in their back pocket, as well as voters. When the time comes there is not much organizing, it has to be simple, a swift senate vote and move on. This is not a crisis, this is typical USA, been there done that. We can improve the process, and keep it. The offspring of the millennials can take it a step further, after AOC and Trump melt all that ice.
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