The hottest Government debt Substack posts right now

And their main takeaways
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Top Finance Topics

It’s a Mixed Credit-Fiat World

Building a New Economics • 196 implied HN points • 01 Feb 24
💰 Finance Government debt Economic History
  1. Mainstream economics' focus on minimizing government debt while ignoring private debt may not be effective in understanding the full picture of the financial system.
  2. Government debt and deficits can actually play a vital role in creating money and increasing the net financial worth of the private sector.
  3. A government running surpluses while the private sector accumulates debt can lead to economic imbalances and potentially trigger financial crises.

The NY Fed Trading Desk's Time to Shine?

The Overshoot • 373 implied HN points • 01 Sep 23
💰 Finance Central Banks Market conditions Government debt Monetary Policy
  1. Central banks should consider being more active in making markets for government debt directly.
  2. During the Covid crisis, bond dealers did not step in to stabilize markets, prompting central banks to intervene.
  3. Constraints on dealers may have led to market instability, prompting discussion on potentially revising regulatory choices.

The Japanese Maginot Line

The Dollar Endgame • 239 implied HN points • 13 Aug 23
💰 Finance Monetary Policy Central Bank Interest Rates Government debt Quantitative Easing
  1. The Bank of Japan's shift in monetary policy caused chaos in FX and stock markets. The volatility in bond markets led to unscheduled bond-buying operations.
  2. Yield Curve Control aims to keep bond yields in a tight range to suppress yields and maintain accommodative monetary policy. This strategy becomes crucial in Japan with high government debt.
  3. The BoJ is strategically intervening in bond rates, pushing them back down whenever they approach a certain threshold. They aim to maintain confusion and market control.

Britain's austerity has millions of losers

System Change • 432 implied HN points • 02 Mar 23
🌍 World Politics Economic Impact Government debt Public Services Climate change
  1. Austerity in Britain has negatively impacted public services and public sector employees.
  2. The economic policy of austerity has failed and led to a significant decrease in real wages for British workers.
  3. High public debt in Britain is a consequence of economic policy failure and does not directly impact the funding of public services.
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Yellen's Billion Dollar Credit Card

The Dollar Endgame • 339 implied HN points • 05 Jun 23
💰 Finance Government debt Federal Reserve Market Dynamics
  1. The Treasury is issuing extremely short-term debt instruments to finance government operations, essentially turning into a massive credit card to avoid default.
  2. The history of short-duration Treasury bills dates back to World War I, where the debate of financing war expenses through debt or taxes arose, leading to the issuance of Liberty bonds and certificates of indebtedness.
  3. The use of these short-term debt instruments by the Treasury is a strategic move to meet immediate financial obligations, especially amid significant spending needs, while also impacting liquidity in the banking system.