We will not be doing the 4% bond rate

JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon repeated his warning about the need to prepare for higher Treasury yields, despite their retreat since he said last August they could surpass 5 percent. 
 “People tend to forecast a little bit of a change, and sometimes it’s a huge inflection point which people almost never capture,” Dimon said Wednesday in an interview with Bloomberg Television in Beijing. “When I talk to my board, we’ve got to be able to handle 5 percent, 7 percent, 8 percent, 10 percent because you don’t know.”

Absurd to think Congress survives with another near doubling of interest charges to over a trillion/yr.  The voters will not do it.  Dimon makes a crucial error about inflation, he cannot distinguish between real and fake inflation.

JPMorgan instead will be prepared for the MMT moment, and his research staff has a handle on that since it is is theoretically assured.  After MMT will will spike to 4%, but only on rare occasions, with the average rate on the ten year holding steady in the 2.1- 2.5 range.  The counter inflation coming from endogenous banking gains.  But when the rate spikes to 4%, the roll over consdequence is greately tamped because of the assigned defaults the Fed will execute over the 14 yer, renewable contract.

But, seriously. I have seen the research staff respond quite nicely to the sandbox concept, and they know what a Wienerized default process looks like, not bad.