$38 trillion in debt at 5% = $1.9 trillion in interest expense per year. That is ~50% of tax revenue… The Fed is not in control. The Bond Market is in control.

Those are obviously just round guess numbers in terms of increasing debt per year.

But you get the idea. The US government cannot even remotely afford to have the debt refinance at 5% for several years in a row. It will swallow our budget.

— Wall Street Silver (@WallStreetSilv) January 7, 2023

The highest yield on the US Treasury curve is the six month T-Bill, at 4.8%.

There is no way the Fed is going to 5%.

The Fed is not in control.

The Bond Market is in control.

— Jeffrey Gundlach (@TruthGundlach) January 7, 2023