THE TURKEY PROBLEM comes to Gov DEBT After >3 decades Japan is starting to get its debt spiral which would wipe out ALL previous cumulative benefits. It had been used by deficit lovers as an example of effective debt financing No debt w/o punishment No tail risk w/o a bust

FOR THOSE NOT GETTING IT Japan was borrowing for free, 1st in the ZIRP sequence. Possible to keep paying debt with debt. As interest rates rise, they will need to accelerate borrowing, hence more borrowing. Like short gamma, FRAGILITY. Same for the US. We pay 1 T in intrst.