Perfect. This is exactly what an economy saddled with $20t in debt needs, soaring borrowing rates.
“The universal phenomena of dealers cutting balance sheet at year-end is contributing factor and overall because the Fed is showing pretty good control over front-end rates,” said Aaron Kohli, a fixed-income strategist in New York for BMO Capital Markets, one of 22 primary dealers that trade with the Fed.
Now the Fed will have you believe higher rates is a result of a booming economy. Jobs are on the rise, profits are strong, and people are generally happy. Yellen and her ilk believe the market needs higher interest rates, in order to stem the tide of the overwhelming inflationary pressures that lurk in the shadows.
Where exactly is the inflation?
I’m not going to offer an opinion as to the borrowing costs going higher for a government that is reckless with its balance sheet and budget. These are merely the facts. Take it for what it’s worth.
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Well, according to the politicians of the party that dominates both Houses of Congress, cutting taxes more and more is going to balance the budget. So no worries there, LOL.
And the American people are clear in polls. They want the budget balanced. And what expenditures do they want to cut out? None of the ones that are significant or large.
We are a country of people who thoroughly expect to have our cake and eat it too. I wonder, is raising rates perhaps meant to solve that problem somehow?
There must be something going on with that, that is hard to see.
Perhaps the Fed is raising, in order to balance things out, in case other governments start printing themselves to the moon?