Larry Fink says we need above 3% growth to avoid cuts to programs and that our deficits are out of control.  There is $7T in money market funds.  David Faber suggests that the treasury market will need the money.

Mr. Fink says inflation will be stickier (between 3-4%), because the demand for workers will be extraordinary with the IRA and Infrastructure Act.  In the first part, Mr. Fink expounds on the long term health and dynamism of the U.S. economy, but when pressed by Mr. Faber that interest payments will soon become the largest part of the budget, he says our major spending programs will be at risk.  An extraordinary statistic is that over 80% of the fixed income market has an interest rate of 4% or higher vs over $18T of fixed income having had a negative yield in December of 2020.  He also does not believe the yield curve will normalize due to the absolute supply of Treasuries with the short end rate being so high.