Central Banks Cannot Fix the Sovereign Debt Bubble - Mises Institute
Central Banks Cannot Fix the Sovereign Debt Bubble - Mises Institute
Source: Mises Institute
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DW NOTE
Central banks expanded their balance sheets by $25 trillion between 2008 and 2022 while sovereign debt-to-GDP ratios climbed past 120% across developed economies. The playbook was always the same: suppress yields, monetise deficits, call it stabilisation. Now the 10-year Treasury sits at 5.21% and the Fed faces 50-50 odds of hiking into a $1.9 trillion deficit. You cannot fix a debt bubble by creating the conditions that made it possible.