/biz/ - Business & Finance

>>21287794
It happened in December of 2018. That’s as far as the Fed got with allowing yields to climb before the market crashed and they had to reverse course. We are at debt to gdp not seen since WWII and guess how they solved that? That’s right, yield curve controls and inflated it away.

https://www.stlouisfed.org/on-the-economy/2020/august/what-yield-curve-control

This was posted today. It’s not there randomly. Powell said they had a presentation shown to them at the last FOMC meeting. This is the only way out outside of actual default. Steep negative real rates will inflate the debt to a more manageable level, but it’s going to fuck the dollar. Suddenly, holding a 10Y means you are absolutely losing purchasing power significantly. Why hold a 10Y as a pension fund when gold is now a tier 1 asset and isn’t being actively debased?