The US Treasury is now operating like a distressed hedge fund.
I dug into the issuance data. We just hit a record $25.4 TRILLION in T-Bills over the last 12 months. That is 69.4% of total Treasury issuance.
Why does this matter? Because the government can no longer afford to lock in long-term rates. They are funding the Empire on short-term paper.
If the Fed raises rates, the interest expense bankrupts the country. They are trapped.
The only path forward is to monetize the debt. I am betting on the printer here.
Liquidity is nearly here imo.
I dug into the issuance data. We just hit a record $25.4 TRILLION in T-Bills over the last 12 months. That is 69.4% of total Treasury issuance.
Why does this matter? Because the government can no longer afford to lock in long-term rates. They are funding the Empire on short-term paper.
If the Fed raises rates, the interest expense bankrupts the country. They are trapped.
The only path forward is to monetize the debt. I am betting on the printer here.
Liquidity is nearly here imo.












