Comments by "MSD Group" (@MSDGroup-ez6zk) on "TLDR News Global" channel.

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  7.  @harryhan2525  the Yen slide it also in question. Japan is the biggest US debts buyer on earth while China has sold again some to avoid its money is going to be freeze again by the Fed. China bought more golds then the USD. While Europe is in recession and 1/3 of the USA debts are held by foreigners. It means the Fed only relies on its domestic market to absorb its debts. In fact, no entity holds more U.S. bonds than the Fed. As of the end of 2022, the Fed owned 35 percent of all domestically held Treasuries. Fed Treasury holdings totaled over $6 trillion. The Fed generally keeps its big fat thumb on the bond market. By buying and holding U.S. bonds, the central bank creates artificial demand, driving prices higher than they otherwise would be and keeping yields lower. This allows the U.S. government to borrow more at lower interest rates than it otherwise could. The problem is the Fed is out of the market right now. The central bank is allowing Treasuries to roll off its balance shed with a quantitative tightening policy meant to push down price inflation. So, if the biggest player in the domestic Treasury market and the second-largest player in the foreign Treasury market are selling bonds, who is going to absorb them all, along with the new debt issued by the U.S. Treasury month after month. This is one of the reasons Treasury yields continue to climb despite hopes of a Federal Reserve rate cut. And that’s a big problem given that the U.S. government has shelled out $522.02 billion on interest payments just halfway through fiscal 2024. That's a 35.9 percent increase over the same period in fiscal 2023. The only category with higher spending was Social Security. It seems likely the Fed will have to jump back into the Treasury market with another round of quantitative easing to monetize some of the federal government’s debt. The problem is that’s inflationary.
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