Andy Constan on Trump Tariffs
On the trap of infrastructure investment and the resulting carrying cost of that borrowed money, on top the operating cost of maintaining the new infrastructure, leaving no capacity to improve in the future at the EOL of the new refurbished whatever. This is entropy plus encumbrance like barnacles on a ship
Aka as stressed that the debt service is
... See moreFurthermore, if US interest rates rise (as at some point they must) then what happened to Mexico after the Volcker interest rate increase in 1979 starts to loom as a real problem. The US will soon be paying out far more to service its debt to the rest of the world than it brings in.14 This extraction of wealth from the US will not be welcome domest
... See moreHarvey, David • B005x3sa74 Ebok
Debt Bombshell: U.S. Interest Payments Soar to $1.1 Trillion in Q1, Devouring 35% of Tax Revenue, Exceeding National Defense Spending.