/biz/ - Business & Finance

>>52616955
Yes of course. But all our macro economic signals are telling us that we are beyond that point already. There is no way that the FED can raise rate to a level near 20%, at the last time we saw inflation like this, that is what it took. If they try that now, the music stops very quickly. So if we know they can't do that they there is only one other possibility, a pivot. At what point is unclear but they have already begun to slow rate increases because the pressure is building. The near implosion of the Gilt market a month ago gives us an idea of how high the pressure is. When they pivot this time, foreign held USD denominated debt will start to default because as bad as the American economy might be, the rest of the world is unimaginably worse. All of the foreign worthless paper is built on top of the US useless paper. In the business they call that a double-whams.