YELLEN: RISING REAL RATES MAY IMPACT FED DECISION ON RATE PATH      – Bloomberg headline, 12/12/23 YELLEN: INFLATION EXPECTATIONS WELL UNDER CONTROL     – Bloomberg headline, 12/12/23 …if global real interest rates returned tomorrow to their historical average of roughly 2%, given the existing level of US government debt and large continuing projected deficits, the US would likely experience an immediate fiscal dominance problem.     – Charles Calomiris, St. Louis Fed White Paper, 6/2/23 The TBAC documents released

The only thing keeping the US government solvent was the very inflation the Fed has been fighting.     -FFTT, numerous times since early 2022, most recently 11/17/23 The month of November saw the largest easing in financial conditions of any single month in the past four decades.     -Goldman Sachs research, via EMH, 12/1/23 Key points:

Fed just touched off 3rd instance of UST market dysfunction in past 13 months; USD liquidity cometh.   – FFTT, 10/17/23Last time the “Soros Imperial Dollar Cycle” drove the USD up and the US Insolvency Ratio as high as it is now, the USD was weakened significantly a short time later.     – FFTT, 10/31/23Given the choice of “hurt the UST market and real economy” or “weaken the USD”, these three Treasury TBAC reports strongly suggest