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To: Sun Tzu who wrote (6988)4/15/2023 11:23:19 PM
From: Sun Tzu1 Recommendation

Recommended By
sixty2nds

  Respond to of 10711
 
This is not directly related to the USD tick tock clock, but it does clearly show why it will be so critical and why even marginal changes in the US ability to run the printer will have an outsized impact.

What Yellen is saying here, and she is theoretically correct, is that so long as the US can make interest payments on its debt, then the absolute amount of the debt is immaterial.

But the question is, what will happen if for some reason there is less demand for the USD and the interest rates get forced up? I think most of us are familiar with people who were doing very well and ended up taking on a lot of debt, and then for some unforeseen reason their situation changed.

#ticktock