The Treasury funds its deficits by borrowing more money, leading to a cycle of increasing debt. With interest payments reaching historic highs and set to climb further, concerns over the US Dollar’s stability are mounting. Investment management giant BlackRock issues a warning, advising investors to shift some cash reserves into bonds amid market volatility and uncertainty surrounding Fed policy.
How does the Treasury pay for something it cannot afford? It borrows more money!
Sounds more like an illegal “business” model… operation that is in is final days: t.co/OGSU6GnpXI
— Peter Spina ⚒ GoldSeek | SilverSeek (@goldseek) May 7, 2024
Federal debt issuance.
Covid spending was supposedly a 100-year emergency. Now, apparently, it's emergency spending forever 🥳 pic.twitter.com/hmJQbIEd9R
— Peter St Onge, Ph.D. (@profstonge) May 6, 2024
The US Dollar has had a tumultuous 2024, in part due to BRICS intervention. The bloc is actively looking to ditch the US dollar and influence other countries to do the same. With the latest warning by BlackRock to secure your US dollars another way, it’s clear that the alliance’s mission is succeeding. Inflation and interest rate hikes only further helped the de-dollarization initiative.
$10 Trillion Asset Manager BlackRock Issues US Dollar Warning t.co/PTR7uGmBA6
— BRICS News (@BRICSinfo) May 7, 2024
US interest payments reached more than $1 trillion in 2023 for the first time in history
Interest costs account for more than 36% of government receipts, the most in 27yrs
They are set to reach a WHOPPING $1.6T by the end of 2024 if rates remain steady👇t.co/LblUXGRjE8
— Global Markets Investor (@GlobalMktObserv) May 5, 2024