Debt worship and the simple rise of the citizens of China and India are two of the main reasons why the US government’s fiat currency is in trouble, and the trouble is likely here to stay.
While these analysts note that falling rates can drive capital out of the dollar, rising rates can do it too… if rises faster than rates or it does significant damage to the economy.
On the one hand, Trump’s latest tariff tax “tantrum” is pretty tame; he’s lowered some of the rates.
On the other hand, those taxes are not making the government “rich”. Ominously, they barely cover 20% of the government’s monthly interest payments.
Wharton analysts suggest the US government has about 20 years before the debt problem becomes “unfixable”.
The has broken down from a broadening formation on the monthly chart.
Broadening formations suggest a loss of control in the market and the…
