The US Treasury Oil Spill, UK Gilts At Crisis Levels, and BlackRock's Trojan Horse

Janet Yellen's debt issuance is crowding out global liquidity, threatening overheated stocks, and putting the UK near crisis. Oh, and BlackRock's ETF may kill Coinbase.

Dear readers,

The BP Oil Spill just had its 13th birthday, and in the decade-plus since the mess, the water in the Gulf of Mexico is still marred by oil flowing from the wreckage of the now-submerged Deepwater Horizon drilling rig.

Don’t underestimate the staying power of icky black goop.

As the US Treasury issues $1 trillion of new debt for investors to buy over the rest of 2023, we invoke the chemical reaction of emulsification to explain the impact a deluge of new US government debt will have on global liquidity, and therefore global markets: like the oil seeping from the Deepwater Horizon, it will crowd out the water.