/biz/ - Business & Finance

reminder: RRP runs out in January
reminder: the treasury is 'kicking the can' hoping that they can wait for the government solvency crisis to happen after the election
reminder: Q3 GDP was boosted by government spending and inventories
reminder: increased inventories, while going into a weak holiday season is bearish - when they have too much inventory and the buyers don't show up (which we all saw with black friday..) then they are forced to mark down inventory, eat a loss on the inventory, as well as sell a lot less
reminder: after RRP runs out, the government will not be able to keep issuing bond on the short end of the curve as there will be no money with which to buy them left
reminder: we have entered a debt spiral, where we must issue more debt just in order to pay debt service, which now exceeds military spending
>OH, BUT GDP WAS HIGHER [DUE TO GOVERNMENT SPENDING!!!]
Lol. Yeah. This all goes away after RRP runs out. Tick tock. Then all that drunk government spending, we are stuck with the debt and the debt service.
"See! The economy is strong! The government is spending like a drunk sailor!"
No. Fiscal irresponsibility will have disastrous consequences.
>What are you talking about anon, RRP running out? What does that have to do with issuing T-Bills?
https://ckarchive.com/b/k0umh6hdz5n92b6n33wn4a8w8p577
Read this.
>normal ~20% rate of auction of T-Bills versus longer maturity bonds.
>In fact, this has effectively been inverted lately, with the Treasury auctioning 70 to 80% T-bills and Notes versus Bonds this past number of months
>Using the Treasury estimated $1.5T of upcoming auctions between now and the end of the first quarter of 2024, it seems the Reverse Repo will be drained by then
>But if the Treasury keeps the same pace of auctions as the last couple of months, as Lyn Alden points out in today's Inspirational Tweet, the RRF will be drained by January
We normally issue only 20% of the bonds as T-Bills. Treasury has been forced to 80%.
Debt spiral.

>>56809762
Tick tock, mumu.
>pic related
Genuinely anons lurking, read this:
https://ckarchive.com/b/k0umh6hdz5n92b6n33wn4a8w8p577
this is literally the best explanation of the crisis we are currently in
>normal ~20% rate of auction of T-Bills versus longer maturity bonds.
normal ~20% rate of auction of T-Bills versus longer maturity bonds.
>normal ~20% rate of auction of T-Bills versus longer maturity bonds.
the Treasury auctioning 70 to 80% T-bills and Notes versus Bonds this past number of months
>the Treasury auctioning 70 to 80% T-bills and Notes versus Bonds this past number of months the Treasury auctioning 70 to 80% T-bills and Notes versus Bonds this past number of months