As Jerome Powell and the Federal Reserve have raised interest rates over the past year and a half, there’s been an inverted yield curve, which left longer term rates at less pronounced levels.
Although that’s changed in recent weeks, as the yields have begun to normalize, with the longer end of the yield curve selling off rapidly. Which is creating a precarious situation for the US Treasury, as they are facing higher rates, at the same time that the supply of US debt is increasing faster than ever, and causing the interest expense on the debt to create even greater borrowing needs.
For decades the treasury and the Fed have seen the debtloads accelerate and they’ve talked about how they would need to be reigned in at some point. Although that never happened, and now we’re starting to approach the point where it’s becoming a more noticeable problem. With more tangible consequences. And in today’s update with Andy Schectman of Miles Franklin, we discuss the position the treasury is in, and why it’s becoming a problem that’s getting harder to ignore.
Andy also gives an update on the latest activity in the retail silvermarket and how the premiums are reacting, and talks about some of the latest data points affecting the US economy. So to find out more about the dynamics that are in place to drive silver in the months and years ahead, click to watch this video now!
********
