MarketWatch/William Watts/10-13-2022
“That was Treasury Secretary Janet Yellen pointing to concerns about the potential for problems related to thin trading conditions in the market for U.S. government debt in response to questions following a speech in Washington on Wednesday, according to news reports.”
USAGOLD note: And she should be worried … With the Fed no longer buying, China and Japan on the sidelines, and U.S. financial institutions disincentivized (as this article outlines), who is going to buy the ever-expanding bond issuance of the federal government? In the chart below, note the steep climb in the aggregate national debt beginning in 2020. With a recession on the horizon, we are unlikely to see any significant moderation in the months, perhaps years, ahead.
Sources: St. Louis Federal Reserve [FRED], US Department of the Treasury Fiscal Service
