The United States has two balloons inflating

There are two bubbles in the United States. The first bubble is a market with leverage that funds inflows into various markets such as the stock market.

The second bubble is the Fed's balance sheet.

If the first bubble bursts, the United States will undertake a balance sheet expansion challenge, inflating the second bubble.

By expanding, it lowers bond yields and also prints and disperses dollars.

If the balance sheet bubble does not burst

the markets will eventually stabilize and a wildly optimistic mood will spread. That is the current state.

However, if the balance sheet expansion challenge fails, leading to a weak dollar and a surge in U.S. interest rates,

and a major crash in the stock market begins, the spread to the U.S. economy would be economic death.

If, by any chance, the second bubble—the balance sheet expansion challenge—was rejected by the Fed

and the first bubble was left to burst unnoticed, that would be,