The hottest Government debt Substack posts right now

And their main takeaways
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We can't afford to keep cutting taxes for the rich

Noahpinion • 26823 implied HN points • 02 Jul 25
🇺🇸 U.S. Politics Tax policy Government debt Economic Growth Republican party
  1. The government can't keep giving big tax cuts to wealthy people because it leads to huge debts. It's not sustainable for the future.
  2. Raising taxes on the rich could help address the financial issues the U.S. is facing. This could provide more funds for essential services and programs.
  3. Continued tax cuts for the rich will mostly benefit wealthy individuals while putting more burdens on middle-class families and the poor. This creates a cycle of growing inequality.

Exactly how damaging is fiscal policy uncertainty?

Klement on Investing • 2 implied HN points • 18 Jun 25
💰 Finance Investment Economic Policy Market Trends Government debt Fiscal policy
  1. Fiscal policy uncertainty can harm economic activity by making businesses hesitant to invest. When companies can't predict future costs or regulations, they cut back on spending and projects.
  2. Research shows that a small increase in fiscal policy uncertainty can lead to significant slowdowns in industrial production and stock market performance. This lingering uncertainty can last for months and hurt overall growth.
  3. Increased uncertainty can also raise the borrowing costs for governments. Higher interest payments can lead to billions more in expenses, which can impact public services and budgets.

The Real Mission of the Fed

In My Tribe • 607 implied HN points • 11 Nov 24
💰 Finance Central Banking Government debt Monetary Policy Financial Crises Quantitative Easing
  1. The main job of the Federal Reserve is to help the government borrow money easily and cheaply. This allows the government to spend on various programs, including wars and welfare.
  2. Despite originating to stabilize the banking system, the Fed has faced criticism for not preventing financial crises. Even after its creation, the U.S. has experienced repeated financial problems.
  3. Quantitative Easing, a method the Fed uses to handle money and loans, may need to end. This would help limit government debt and potentially benefit everyday Americans in the long run.

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.

It’s a Mixed Credit-Fiat World

Building a New Economics • 196 implied HN points • 01 Feb 24
💰 Finance Government debt Economic History Financial Crises
  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.
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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 Bond Market 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.

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.

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.