Monday, August 2, 2021

Spending slow down?

Stealth QE Is Over: Treasury Projects Adding $350BN In Cash By Dec 31, Reversing "Liquidity Tsunami"

Or maybe just rolling debt now that the Fed is collecting hefty taxes? Why not hold the debt limit and just focus on refi?

The Fed is always late in reporting taxes collected, and there is some arbitrage on occasion. The debt limit is one of those arbitrage points.  Roll over as much debt as we can onto the Fed sheet, hen set the debt limit, then report taxes collected. We get debt refinanced, but end up with quite the rebellion when the scam is discovered.

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