Laddered T-Bills

[Cletus11]

Maybe but I'm not convinced. There's a lot of pent up demand and a $1.2 trillion infrastructure package still to be spent. We already have more jobs than people looking. Inflation and interest rates will hurt but maybe not enough to send us too far south in the short run. Could just be a period of slow growth.

Inflation is not going to stop. Gas continues to go up (was up to $4.31 locally) and the economy cannot stand that type of cost for gas as it drives up the cost of all goods due to shipping. Supply chain is ugly in some areas and with the China zero covid shutdowns is only going to get worse. So you will have price spiking of certain items driving up prices due to limited to no supply. Then the effects of Russia and Ukraine on the food supply and some of the raw materials they supply the world have only begun to be felt and will be a huge issue come the fall when a lot of the current supply of those materials starts to really be felt.

as for infrastructure spending, do you know how much construction costs right now. anywhere between 25-50% more than it did 18 months ago due to major shortages of basic stuff like steel, electrical components, etc...and good luck with getting somebody to give you a shipping date. Had some electrical components that are normally 6-8 week lead items that are now 12+ months delivery.

 

[bdgan]

Have you researched the US Fed debt service on $30 Trillion at various interest rates?

$30 trillion debt financed at 3% = $900 billion of interest.

Before Covid the Federal spending was in the $4 trillion range. Now that we're mostly past Covid Federal spending is projected to remain near $6 trillion.