The current macro situation in TLDR:
Nobody wants US bonds and dollars anymore
The FED is trying to create demand for those bonds by increasing the yield
To pay the higher interest on those bonds you need to steal more from your citizens via taxes
The US bonds only hold value as long as US Average Joe is able to pay his taxes
There is a limit to what u can steal from your citizens via taxes
That limit is being reached as we speak. Too much for many already, big companies + smart people leaving the country
If you cannot steal anymore and gotta pay the interest to not risk the default on those debts the only solution is to print more and devalue your currency
That's the stage we are entering
Print + bailout infinity
Nobody wants US bonds and dollars anymore
The FED is trying to create demand for those bonds by increasing the yield
To pay the higher interest on those bonds you need to steal more from your citizens via taxes
The US bonds only hold value as long as US Average Joe is able to pay his taxes
There is a limit to what u can steal from your citizens via taxes
That limit is being reached as we speak. Too much for many already, big companies + smart people leaving the country
If you cannot steal anymore and gotta pay the interest to not risk the default on those debts the only solution is to print more and devalue your currency
That's the stage we are entering
Print + bailout infinity
The current macro situation in TLDR:
Nobody wants US bonds and dollars anymore
The FED is trying to create demand for those bonds by increasing the yield
To pay the higher interest on those bonds you need to steal more from your citizens via taxes
The US bonds only hold value as long as US Average Joe is able to pay his taxes
There is a limit to what u can steal from your citizens via taxes
That limit is being reached as we speak. Too much for many already, big companies + smart people leaving the country
If you cannot steal anymore and gotta pay the interest to not risk the default on those debts the only solution is to print more and devalue your currency
That's the stage we are entering
Print + bailout infinity