Bloomberg/Robert Burgess/10-14-2022
“Make no mistake, if the Treasury market seizes up, the global economy and financial system will have much bigger problems than elevated inflation.”
USAGOLD note: Another treatise on the problems festering in the US sovereign bond market, this one from Robert Burgess, the executive editor of Bloomberg Opinion. He outlines the dangers of quantitative tightening. What should most concern the Fed and Treasury, he warns, is the “deteriorating demand at US debt auctions.” We are reminded that economic history is riddled with examples of nation-states turning to the printing press when they cannot find buyers for their sovereign debt.
