A chart for ther monetary cycles of the aggregate real and nominal and ten year. The green is scaled, and is the annual percent change in interest charge for Congress.
If I look at Obama and tax and sequester (2011-2015Q2) I see Congress getting good deals on debt, interest charges are zero mean and ten year government investments return the real growth rate. This is equilibrium and this is why Obama had the longest expansion in history. Obama had no choice.
Look at 1976-1983, pricing was not even working back then. The Fed left gold, and left the precious metals market in dis-array, as was all of commodities. This is chaos after an impulse response when the aggregating agents cannot bet their way along the path.
Since 2016, interest charges are back to rising, and rising fast, as fast as any other period. Note one anomaly, the 2001 recession had interest charges falling, not rising, and that recession was actually revised away as one can see from the real growth line. (The other takeaway is that Republican presidents are dumber than shit).
Tax and sequester works. But we will do the Nixon Shock anyway. So we can obviously see that in the trade, the best we can do is generate half the pricing dis-array of the Nixon Shock. Make it a challenge, and we waste half as much ice as usual. So, as is obvious, we have two choices, have an MMT moment or tax and sequester.
The, next we go through the Reagan Alzheimer's phase, and finally, we get good accountants in the Swamp. Then repeat.
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