The United States is acting as-if The Federal Reserve Raising Interest Rates solves everything. Government Debt in the United States increased to 30,499,619 Trillion in May from 30,374,155 Trillion in April of 2022.
The US Debt to GDP increased to 137% from 128%.
They act as-if there is nothing for the public to worry about; however, many issues have not begun to trickle into the US, as far as we’re concerned.
- Winter is going to be a huge test for the US and so will the household debt crisis — not yet discussed in media as companies are trying to figure out how to keep consumers spending (e.g. buy now; pay later).
But, raising rates does not stop the government from spending, nor does it stop the government from issuing more debt. We also have other factors in play such as the Federal Reserve Balance Sheet, M2 Money Supply, and WH Executive Orders at play here.
HOWEVER…. The point of this post is the “very tight” interconnection between the US and UK.
Remember it is a global market and just like the global market crash of 1929 we are more connected today than ever before.
- The US and UK are at EXTREME levels of government debt and both facing economic collapse scenarios.
- If the UK goes down – don’t think for a minute that the US cannot go along with it. You have seen my recent post about the US Liquidity Swaps, right? If not, scroll down the news feed and you’ll see it.