💸The US plans to borrow $776 billion in the final three months of 2023.
📈This raises concerns about the source of the money and its impact on borrowing rates.
💰The US government's borrowing is increasing, and the cost of that borrowing is also rising.
🔄Debt crises and defaults can be bullish for a currency, but lenders should be cautious.
📉Investors should be wary of long-term debt and consider active hedging strategies.
How much does the US government plan to borrow in the final three months of 2023?
—The US plans to borrow $776 billion in the final three months of 2023.
What are the concerns related to this increased borrowing?
—There are concerns about the source of the money and its impact on borrowing rates in 2024.
Is the US government's borrowing increasing over time?
—Yes, the US government's borrowing is increasing, and the cost of that borrowing is also rising.
Can debt crises be beneficial for a currency?
—Yes, debt crises and defaults can be bullish for a currency as they make it more scarce.
What should investors consider when it comes to long-term debt?
—Investors should be cautious with long-term debt and consider active hedging strategies to protect against downside risk.
00:00The United States plans to borrow $776 billion in the final three months of 2023.
03:40The US government's borrowing is increasing, and the cost of that borrowing is also rising.
09:02Interest rates are expected to rise, and the government's borrowing at the long end of the yield curve will contribute to this increase.
09:28Debt crises and defaults can be bullish for a currency, but investors should be cautious.
10:59Investors should be wary of long-term debt and consider active hedging strategies to protect against downside risk.
