The US has literally doubled its debt to GDP ratio in 15 years and they're telling the public they can go higher for longer without causing a major recession.
Either they are lying to us & never really intend to go higher for longer or they're lying to themselves.
— Sven Henrich (@NorthmanTrader) September 21, 2022
The last time the 2 year yield hit 4% was on October 17, 2007.
US debt was $9 trillion in Q4 2007.
US debt now stands at $30.5 trillion as of Q2.61% debt to GDP in 2007 vs 122% debt to GDP now.
— Sven Henrich (@NorthmanTrader) September 21, 2022
Reminder: While Volcker raised rates far above core inflation he did so with an economy at 30% debt to GDP vs 125% now.
Nugget: Volcker cut rates hard with core inflation still above 10%.
Why? Because the economy went into recession. pic.twitter.com/jdmjwwQLlG— Sven Henrich (@NorthmanTrader) September 21, 2022
EVERYTHING IS GOING SWIMMINGLY: Profits Plummet And Vehicles Left Unfinished As Ford Struggles With Inflation.
JEFFREY CARTER: The Joe Biden Economy Is Like Groupon: Half off. “If you held the S+P 500 ($SPY) on January 1st of this year and haven’t sold, your return is -17.25% including dividends that were reinvested. That’s an annualized gain of -24.12%. For what it’s worth the 2008 crash was 50%. Hey, we are halfway there! That’s something isn’t it? It ain’t the Republicans or Trump’s fault. It’s right in the lap of Joe Biden and the Democrats. The buck stops with them. They instituted the green energy policies and all the stupid spending. . . . Meanwhile, all Democrats can talk about is abortion no matter what state you are in. No one cares when you can’t feed yourself, walk down the street without the threat of getting assaulted, or afford to heat your home.”