Asset Allocator’s Post

5 Things to Know - Thing 3) Too Much Government Spending and Voting Won’t Fix It: DKI Takeaway: @MishGEA continues: The debt is now over $34T. Interest on the national debt is over $1T and rising fast. Money that would go for investment now goes to bondholders while the government destroys value with excessive consumption (see the GDP vs Debt graph in Thing 1. Neither party will fix deficit spending. The Fed can’t fix it. Unrestrained fiscal stimulus created the mess we’re in, and nothing suggests a policy change no matter who wins the election. Please check out more of Mish’s writing at MishTalk.

State governments are expected to borrow more than $100bn this financial year to cover the surge in public spending, with just under 60 per cent of new state and territory debt to be issued by Queensland and Victoria, threatening to undermine efforts to tame inflation: https://bit.ly/4gzhw9S

Rates have gone from 6.11% to 6.92% and down a hair today, 6.91%. Over 600 billion in new government debt recently is not helping. We need to get our Fiscal House in order as a country.

The government bond market participants expect the government to adhere to its borrowing target for the current financial year. The central government plans to borrow Rs 15.43 trillion in the current financial year, out of which they aim to borrow Rs. 6.6 trillion in the second half.

Have solved government debt through a new investment vehicle. Money is invested by people or organizations, it pays at roughly 10%, then it is taxed by government at 15%. This tax earning is invested in financial system at SP500 new standard of 15% annualized return. Solving the debt in 45 years even in a high fed rate economy or borrowing cost. https://lnkd.in/dDhSDGd6 https://lnkd.in/dh9T3VZv

The surge in 10-year UK gilt yields from 3.75% to 4.2% signals growing market concerns over fiscal discipline, as public borrowing exceeds expectations. With debt now surpassing 100% of GDP for the first time since 1961, pressure mounts ahead of Labour’s first budget. If borrowing rises to fund infrastructure projects, GBP volatility could increase. The markets are sending a clear message: there’s little room for fiscal missteps. #GBP #GiltYields #FiscalPolicy #CurrencyMarkets #AlpineFX

With inflation now back at 2%, I took a mini look at our national debt and compare how Brown and Sunak responded to global crises. Under Brown, banks were bailed-out by over £130bn. This is set to loose the country around £83bn. National debt shot up from <30% to around 70%. Under Sunak, the government spent £70bn on furlough and loaned out a further £77bn in business loans. After accounting for fraud and defaults, these covid loans are set to create a £9.3bn profit. National debt, since 2010, has gone from 70% to 97%. Under Brown national debt went up 46% as a share of our GDP. Under Conservatives it went up 26.7%. Read more of my mini analysis 👇👇 👇 https://lnkd.in/ej3FZEhb

Interest rates fell for the 9th consecutive week, as government recorded 19.9% over-subscription of T-bills last Friday. Meanwhile Fitch expects Treasury bill yields to decline in 2024 as the government progresses with the external debt restructuring. Head of Trading at Republic Securities, Patrick Edem Agama shares more insight. #Ghana #treasurybills #yields #economy #debtrestructuring #interestrates

With gilt yields climbing due to increased borrowing, SONIA swap rates may rise as markets price in expectations of prolonged tighter monetary policy to counter inflation. Borrowers delaying fixed-rate decisions should consider this carefully.

📢 Breaking News: Government borrowing in May hits highest since Covid - BBC. The recent report from the BBC states that government borrowing in May has reached the highest level since the Covid pandemic began. This news has significant implications for the economy and government fiscal policy. Let's stay informed and discuss the potential impact. Check out the full article for further details. #GovernmentBorrowing #EconomicNews #BBCUpdate https://ift.tt/A4QjJfY