| Ripple Effect — May 6, 2025
When the Federal Reserve meets tomorrow, Treasury Secretary Scott Bessent will be among those cheering for a rate cut.
Why? Because he has the job of rolling over trillions of dollars in U.S. debt over the next few years. And at today’s interest rates, it’s killing the budget.  This soaring cost of debt has been significant for risk-averse investors who were starved of income when interest rates were stuck at zero percent.
But it’s a bum deal for taxpayers, as every extra dollar of interest paid represents past political boondoggles. And… is one less dollar that could be invested in the private sector, the future.
The debt has been building since well before Dick Cheney advised, “Reagan proved that deficits don’t matter.”
But for Bessent, this is an immediate problem. With the Fed now expected to cut interest rates four times this year, things may start to move in the right direction for him. But we have our suspicions…
-Addison | 
Coal fueled the first industrial revolution. Oil fueled the second. Now a silvery-white, energy-packed metal from Texas is about to fuel a THIRD, new era of American might. Three stocks are poised to lead the way. See the details here. | P.S. As always, your cheerful reader feedback is welcome: feedback@greyswanfraternity.com (We read all emails. Thanks in advance for your contribution.)
How did we get here? Find out in these riveting reads: Demise of the Dollar, Financial Reckoning Day, and Empire of Debt — all three books are now available in their third post-pandemic editions. You might enjoy one or all three. 
(Or… simply pre-order Empire of Debt: We Came, We Saw, We Borrowed, now available at Amazon and Barnes & Noble or if you prefer one of these sites: Bookshop.org, Books-A-Million or Target.)
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