In the last 120 years, when a country’s debt got really high, 98% of them ended up not being able to pay it back. Ken Griffin says the government can avoid this by printing more money, but it would mess up the economy really bad.
A simple solution could be for Congress to spend less, but that’s probably not going to happen. Brace for tough times ahead.
Over the last 120yrs 98% of all countries where sovereign debt/gdp hit 130% ended up defaulting. (GS) pic.twitter.com/GchqHD8nTP
— Holger Zschaepitz (@Schuldensuehner) November 9, 2023
Ken Griffin said The Fed can continue printing money to avoid a default, but “the economic consequences would be devastating."
Simple solution: Congress will just stop spending like a drunken sailor
lol, just kidding, never gonna happen. Bring on the devastation.
— zerohedge (@zerohedge) November 9, 2023
PBOC in November 2013: "It is no longer in China's interest to increase FX reserves (a.k.a. UST holdings.)"
2014, China stops buying USTs on net, but keeps buying gold.
GLD/TLT 👇 offers significant alpha over the ensuing 9 years, but few in the west have had the trade on. https://t.co/ecKv76WGJf pic.twitter.com/imzDMpabFH
— Luke Gromen (@LukeGromen) November 8, 2023
Citadel’s Ken Griffin Warns the Current Fiscal Deficit Is Unsustainable, Inflation to Last Decades
Ken Griffin, Citadel’s founder, foresees a period of global unrest and structural shifts leading to de-globalization and persistently high inflation, potentially lasting decades. He argues this environment will exacerbate the cost of the U.S. deficit, already inflated by unchecked government spending. Griffin criticizes this spending as reckless and unsustainable, noting that despite a strong job market, there’s a pervasive unease among U.S. consumers. He cautions against the Federal Reserve’s potential strategy of printing money to forestall default, stating it would have catastrophic economic results, sending the economy into severe decline.