Lacalle: Central Banks Cannot Fix the Sovereign Debt Bubble - Hedgeye
Lacalle: Central Banks Cannot Fix the Sovereign Debt Bubble - Hedgeye
Source: Hedgeye
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DW NOTE
Central banks created the sovereign debt bubble by monetizing deficits for fifteen years — now Lacalle expects them to solve it. They won't, because the policy toolkit that inflated the bubble is the same one that would be needed to deflate it: rate suppression and balance sheet expansion. The Fed just raised rates to 3.75%-4.00% while the Treasury borrows $1.9 trillion this year. That's not a solution, that's a timer.