Hello everybody and thank you for tuning into the weekly report.

No Janet, we cannot afford more wars.

Bloomberg Intelligence recently released an analysis showing that a year of interest payments on the

national debt now exceeds $1 trillion. This should have been a wake-up call to Congress and the Biden administration,

but it was largely ignored. The political and financial elites continued failure to acknowledge the dangers posed by

ever-growing national debt is exemplified by Treasury Secretary Janet

Yellen's comment that America can and must fund both the Ukraine

war and the Israel war. As a former Fed chairman, Yellen no doubt

thinks it does not matter how much the US government spends

as long as the Fed can monetize the debt.

Monotizing a federal debt requires the Federal Reserve to keep interest rates low.

These low rates incentivize government businesses and private citizens to take on large amounts of debt.

This may not be a problem as long as the Central Bank keeps rates low. However, once the Central Bank raises rates, many

individuals, businesses, and even governments will be unable to manage their

debt.

Businesses will also learn they were misled by low rates into making unwise investments,

creating a short-term boom, a bubble, and a crash.

The most pernicious Fed created bubble

is the government bubble.

The Fed's willingness to facilitate continued increased spending on war and welfare

leads to massive deficits. The increased spending and the low interest rates necessary to

monetize the debt will inevitably lead to a bursting of the government bubble, followed by a major economic crisis.

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