We're Past the Point of NO RETURN- They have a Weimar Gold Reparations Problem!" -Luke Gromen - SilverTrade
We're Past the Point of NO RETURN- They have a Weimar Gold Reparations Problem!" -Luke Gromen - SilverTrade
Source: SilverTrade
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DW NOTE
Luke Gromen argues the US faces a Weimar-style reparations trap: foreign creditors hold $8.5 trillion in Treasuries while the government runs a $1.4 trillion deficit through June — 3% worse than last year — with rates at 4.77% and climbing. The Fed is now more likely to hike than cut in September. Weimar's problem was denominating reparations in gold it didn't control. America's problem is denominating debt in dollars it prints but can't print without destroying the bond market that finances the deficit. One way or another, the creditors eat the loss.