The cascading problem the Fed fears but doesn't discuss publicly is that if tax receipts drop (from recession) while spending remains high, the government must borrow more money; higher borrowing requires higher Treasury yields to attract international buyers, creating a 'doom loop' of escalating borrowing costs.

causalpending

Speaker

Mike Taylor

Evidence Quote

the cascading problem...if tax receipts are down...they are going to have to borrow more money...international buyers...are going to demand a higher price...the doom loop

Source

Biggest. Bubble. In. Capital. Market. History | Mike Taylor 1-on-1 With Keith McCulloughHedgeye
Created: 8/10/2026, 11:06:55 PM

My Notes

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