Luke Gromen(@LukeGromen):Look at replies to my OP at bottom Consensus does not realize yet that rates are the ONLY thing you can cut (top cht) that does NOT trigger a western sovereign debt spiral w/US debt/GDP at 100-yr highs (bottom cht) Cutting anything but interest is mathematically CERTAIN to trigger a US & western sov debt spiral w/US Net Int'l Investment Position at -$22tn while foreigners owe $13-14tn in USD-denominated debt, b/c the resulting USD spike would trigger a NIIP unwind that crashed UST mkts Have to devalue debt/GDP 1st. Any austerity would be a root canal with a shotgun: Effective but fatal.

2026.09.24 14:50

Look at replies to my OP at bottom Consensus does not realize yet that rates are the ONLY thing you can cut (top cht) that does NOT trigger a western sovereign debt spiral w/US debt/GDP at 100-yr highs (bottom cht) Cutting anything but interest is mathematically CERTAIN to trigger a US & western sov debt spiral w/US Net Int'l Investment Position at -$22tn while foreigners owe $13-14tn in USD-denominated debt, b/c the resulting USD spike would trigger a NIIP unwind that crashed UST mkts Have to devalue debt/GDP 1st. Any austerity would be a root canal with a shotgun: Effective but fatal.

Luke Gromen@LukeGromen

2026.09.23 19:49

Cut rates to zero, cut interest on bank reserves to zero, buy back some of the debt with 0% T-Bills, let gold moon, instruct Warsh to revalue official gold to the new much higher price, depositing multiple trillions into the TGA, use the TGA to buy back to rest of the debt, voila