This week, the Federal Reserve (Fed) adjusted its Bond Term Funding Program (BTFP), established in March 2023 post the regional banking crisis, to prevent banks from exploiting an arbitrage opportunity.
The interplay between global asset prices and liquidity is a critical area of focus for investors and policymakers alike. Understanding the dynamics that drive these financial variables provides insight into the broader economic climate.
The implications of this ballooning debt are dire. During the 2008 financial crisis, the national debt was a third of its current size, with the government incurring over $1 billion daily in interest. Today, that figure has tripled to $3 billion per day.
Stay frosty out there, freaks.
With runaway debt, massive amounts of unrealized losses on the balance sheets of banks, and sticky inflation it hasn't impossible to think that we are well on the way toward a hyperinflationary event in the US.
Putting the debt increase in context & examining the four drivers causing it
