U.S. Representative Nancy Mace (R-SC) recirculated an image — either photoshopped or created by generative A.I. — of U.S. Treasury Secretary Janet Yellen at a casino, laughing as she pulls the arm of a slot machine.
Mace, who isn’t a financier, has plenty of backup in her Yellen criticism from some of the biggest names on Wall Street. Recently the investing legend Paul Tudor Jones II interviewed fellow Street legend Stanley Druckenmiller, who said of Yellen’s failure to issue long-dated treasuries to take advantage of now-vanished low interest rates:
“I literally think if you go back to Alexander Hamilton, it was the biggest blunder in the history of the Treasury. I have no idea why she’s not been called out on this, she has no right to still be in that job after that.”
This is not sustainable. https://t.co/rJjh3ocej9
— Rep. Nancy Mace (@RepNancyMace) November 2, 2023
Druckenmiller told CNBC, in a quote that might have been illustrated by the doctored Yellen photo, “We are spending like drunken sailors.” He also said his father told him “when you’re in a hole, stop digging, Stan.”
Mace is amplifying the Wall Street Silver post which includes a quote attributed to CNBC: “The US Treasury department said it would need to borrow $776 billion in the current quarter and $816 billion in the first quarter of calendar 2024.” Mace added: “This is unsustainable.”
Druckenmiller concurs. “The politicians that are telling you and think they’re not going to cut entitlements,” he says, “it’s just an outright lie, the numbers absolutely don’t work, it’s a fantasy.” That matches Mace’s “unsustainable.”
(Note: Mace voted with the Freedom Caucus to remove House Speaker Kevin McCarthy in a revolt that grew out of deep concerns over federal spending.)
CNBC also reported that the “Treasury will auction $112 billion in debt next week to refund $102.2 billion of notes set to mature Nov. 15, raising more than $9 billion in extra funds.”
The Fed’s interest rate manipulation has been effective, says former Dallas Federal Reserve President Robert Kaplan, but the structural problems created by what may soon approach a trillion dollars in interest will continue to challenge the Treasury, he says.
"I think the Fed is going to need to keep rates higher into a meaningful part of 2024. As they're doing that, the federal government keeps repricing these maturities," says Fmr. @DallasFed President Robert Kaplan. "That's a real structural issue at the federal government level." pic.twitter.com/kpSwqU6Voz
— Squawk Box (@SquawkCNBC) November 2, 2023
Note: The Wall Street Silver X account has a gold checkmark, which means it has purchased a subscription to social media network’s Verified Organizations, which costs $1,000 per month.
.jpg){kind=link}