Risk of a new age of financial repression is rising
The idea of pushing US government bonds down the throats of investors is being taken increasingly seriously
Source: Financial Times
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DW NOTE
Financial repression — forcing savers to fund government deficits at below-market rates — becomes attractive when you're running a $1.4 trillion deficit through nine months and can't raise rates without detonating your own debt stock. The FT treats this as emerging risk. It's already here: the Fed held rates at 3.65% through July while inflation ran higher, and every basis point of artificial suppression is a transfer from lenders to the Treasury. Call it monetary policy if it makes you feel better.