Dead End Debt

You were under the impression
That when you were walking forward
You'd end up further onward
Put things ain't quite that simple
--The Who
This missive proposes a coming state of debt scarcity. The thesis is that gigantic levels of borrowing in the past are saturating the market for more debt. Put simply, people may not want to borrow any more.

Even if the Fed offers unlimited credit supply, there will be little credit demand.

If such a situation comes to fruition, and I think that there's a good chance that it might, then it leaves only the government as the 'borrower of last resort.'

Indeed, we've already seen a shift in this direction, as risk moves from private to public ledgers.

The question becomes: how much can governments borrow if the citizenry does not want to borrow?

position in TLT