Interest rates are at a new high, the difference in the interest rates from when Biden took office in 2021 and today is just about 3%. What is 3% on 33 trillion in debt? Just about $1 trillion. That is not going to happen overnight, but Biden has increased our tax burden by $1 trillion.
https://www.cnbc.com/2023/10/17/fir...sara-eisen-on-squawk-on-the-street-today.html
Bank of America admits they have $131 billion in unrealized losses on these bonds (if they sell them rather than hold them to maturity they would lose this much money, if they keep them to maturity they cannot pay competitive interest rates on savings accounts and the money will flee the bank). Their choice is to declare bankruptcy today or tomorrow. As long as these interest rates keep going up the losses in every bank are catastrophic. During wars people borrow money, they don't invest, they sell investments. The more they sell US bonds the higher the rates will go.
All we need is one major bank to sell their bonds and it will trigger a bank run and bank collapse.
https://www.cnbc.com/2023/10/17/fir...sara-eisen-on-squawk-on-the-street-today.html
Bank of America admits they have $131 billion in unrealized losses on these bonds (if they sell them rather than hold them to maturity they would lose this much money, if they keep them to maturity they cannot pay competitive interest rates on savings accounts and the money will flee the bank). Their choice is to declare bankruptcy today or tomorrow. As long as these interest rates keep going up the losses in every bank are catastrophic. During wars people borrow money, they don't invest, they sell investments. The more they sell US bonds the higher the rates will go.
All we need is one major bank to sell their bonds and it will trigger a bank run and bank collapse.
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