Are we happy about this?

Arent they like still below 0 corrected for inflation? What will make them blow up? Loss of investor faith that the us gov wont default?

The US shops around its debt. We ask people who want to lend to us how much they'll lend and what interest rate they'll charge. You can call that charge the "yield".

That varies based on how much we need to borrow and the willingness of the people lending (Crappy economy? Then the government is a good investment, relatively speaking. Willingness to lend Uncle Sam money goes up, yield goes down.). And this is a constantly changing process. So some years we might need to borrow $1 trillion at 5%, other years $500 billion at 3%.

However we've been cheating for about the past decade by having the Federal Reserve print out a bunch of money and then lend it to us. This has let us rack up a lot of debt, way more than we should have. And it's been cheaper than it should have been.

The Federal Reserve is no longer lending so much. In fact, it's stopped. And it's selling off the IOUs (or just taking the cash we repay them with, same thing).

This is very, very bad.

Bullish on crypto since dem house derails everything, recession 2019 lads.

I really don't fucking care.

The problem isn't where they are relative to inflation, it's where they are relative to where they were and relative to how much debt there is.

In the past couple years we've had rates go up 2% and, as a rough target, we'd expect them to go up another 2% in the next couple years.

On about 20 trillion of debt, that's an extra $400 billion a year. About half our entire military. An eighth of the federal budget that needs to be paid for...somehow. And goes to, seemingly, nothing.

So either Congress hikes taxes $200b two years in a row (unlikely, especially with split houses, especially for something as nebulous as "paying debt", and guaranteed to cause a recession), borrows an additional $400 billion every year going forward, or inflates it away by having the treasury print that much more money every year.

So we'll have the inflation rate tick up 2% but, more importantly, investors starting to get wise. If they get antsy, wondering about the next round of inflation, they'll gradually stop lending, they'll start selling their debt, and, this is the worrisome part, that makes yields rise.

Putting us back to square one.

yep, we happy. get shit on racist trumpfag

>“Selling off the iou’s”
Could you explain this last part?
Why is this very bad?

Niggers can type?

Damn. What do you think are
the safest places to store liquidity?
Do you think shitcoin is a safe haven due to no way the government can touch it/default it?

BAHAHAHAHAHA REDDITARDS/LIBTARDS ON SUICIDE WATCH
>B-b-but muh house...
>B-b-but muh blue wavez!!!!