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/biz/ - Business & Finance

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20288549 No.20288549 [Reply] [Original]

Can someone redpill me on yield curve control? Why would the government want to buy bonds/treasuries and suppress yields?

>> No.20288685

It creates Cheap debt for failing companies to continue turtling along for another couple years

>> No.20288736

>>20288549
It creates deeply negative real rates. At -15% real rates gold will be 5500. Buy gdx and gdx. Last time they did ycc was ww2 and real rates hit -15%

>> No.20289134
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20289134

>>20288549
Don't bother. Buy EPIC.

>> No.20289153

>>20288736
>Buy gdx and gdx
you mean gdx and gdxj

>> No.20289190

>>20289153
Yes typo. Keep some dry powder too. Next market crash you may be able to get leaps at deep discounts

>> No.20289271

>>20289190
based. i'm using a retarded bongistan broker with no options but at least it's in a tax free wrapper
how should i split between gdx and gdxj? right now i'm 50/50 not sure if that's optimal

>> No.20289306

>>20289271
I domt even know. I bought a fuckton of leaps last year. Waent 10x. Swapped for shares. If it crashes again I'll swap shares for calls. Probably mostly gdxj. If you look at the holdings it's mostly mid caps not juniors.

>> No.20289429

>>20288549
They suppress yields because otherwise, if the real rate of return was positive money would flood into bonds and crash the various bubbles.