/biz/ - Business & Finance

What does this mean?

>>54846657
2nded. I was only 11 when this happened before.

what does it mean
we sussin or we bussin ffs fr fr

>>54846657
More inflation.

>>54846635
Nobody cares. America is irrelevant.

>>54846688
No it doesn't dumbass. You're going to miss inflation.

bullish. extremely fucking bullish lmao. markets are going to pump hard.

>>54846688
Literally the opposite of that. This is the fiat burn mechanism.

>>54846688
Anon... how is destroying debt when your currency is debt based supposed to increase money supply?
Maybe think before you speak.

So nobody knows what this means?

>>54846745
I drink your milkshake

Finance is the dumbest fucking Calvinball shit ever.

>>54846657
finance bonds with longer bonds
basically 30 trillion becomes 300 trillion

>>54846745
Less money to loan out = higher interest rates.

>>54846712
Look at the digits you replied to, shut the fuck up

numbers > you

>>54846769
Moneychangers with their garbage FIAT system is the reason.

Jesus said no and threw them (fake jews) out! but they killed him.

Is this gonna make my digital shitcoins pump?

>>54846745
i think it means they are preparing for a default but since that what it reads like, it most likely means the opposite and they'll just raise the ceiling

>>54846635

are they paying debt....with debt?
how the fuck does that even work?

>>54846840
Why can't they just don't pay the debt?
What could possibly go wrong?

>>54846745
they're about to buy their own bonds using borrowed money, which they got from selling bonds

>>54846688
Everybody in this thread is retarded except for this anon.
It is inflationary to PRINT MONEY and buy DEBT in order to control yields and increase LIQUIDITY in the bond market.
This is super fucking obvious and the fact that this entire thread is full of retards who can't grasp a concept that is essentially identical to QE with only small nuances is a massive signal that this economy is about to implode.
TLDR you're all retarded

>>54846840

It's things like this that scream to the critically thinking anon that fiat truly is a ponzi scheme, or a confidence game, if you want to be generous.

>>54846840
it's simple
they throw the election and finance everything with t-bills (short duration loans)
trump then has a 60 trillion debt but short term

trump puts a dove inside the FED and the USA goes full MMT
total debt goes to 120 T in 2 years (2026)

>>54846735
you can't erase debt with more debt.

>>54846880
wtf I love MMT now, financial perpetum mobile

>>54846840
kicking the can down the road, hoping for a stronger economy in the future to pay for it (it wont)

How long till interest payments are as much as the government gets from taxes, 10 years, 15?

>>54846735
Increases volatility and liquidity. Effectively the same as QE.

>>54846735
>destroying debt
if you borrow 100 bucks to buy 100 bucks worth of bonds you did not destroy jack shit

>>54846657
They want to decrease the money supply and low the velocity of cash. Things will come crashing down. The Fed is running out of way to control the economy.

>>54846970
I don't think they're hoping for a stronger economy to pay it off. They know the system will fail because it was designed to. Or ruling class is looking to leech as much wealth as possible from the citizens before the system fails.

>>54846948
>>54846986
>>54846995
They're erasing it with funds from interest lol.
Around 10 trillion needs to be destroyed.

>>54847030
We fixed inflation before with the Economic Stabilization Act of 1970: a 90-day freeze on wages and prices in order to counter inflation. It was illegal for businesses and producers to increase wages and prices and it worked. But nobody talks about it

>>54846971
never thought about that

>>54847054
>I don't think they're hoping for a stronger economy to pay it off.
It's the line they have to sell the public on because there's literally no other way to logically explain driving full speed towards a cliff other than claiming someone will build a bridge before you get there.

>>54847072
lmao

>>54846681
>we sussin or we bussin ffs fr fr
Our bussy gon get fucked

im starting to think that all of this is just retards guessing

>>54846816
Thank you, Jesus, for giving your life for our sins. We're doing our best.

>>54846884
>It is inflationary to PRINT MONEY
ok but why not just buy the debt with w/e funds available?
>increase LIQUIDITY in the bond market
how? is the term liquidity being used like supply in this phrase? if so, wouldn't liquidity decrease from the increase in demand?
>>54846735
if you print more money as a means of destroying your debt.

The government transfers the risk of default/loss from its own debts by devaluing the currency and thus socializing the losses across the economy.

>>54846716
>>54846735
You pay the debtors with cash, who then spend that into the economy. That creates inflation.
>>54847072
>inflation free zone

>>54846635
I've never felt as much of a pirate as now. I'm literally making real money with magic internet money.
What's more, im literally making it with a memecoin ($PAPA) whose whole deal its that it eats other shitcoins for breakfast. I couldn't make this shit up even if i wanted to.
My brother is a doctor (PHD, graduated from a good college) and he's making at least 1/3 of what i make monthly.
The world is stupid

>>54847030
This doesn't decrease the money supply. The gov can't rebuy debt without either running a surplus or just issuing more debt. They aren't running a surplus lol, so this is just buying debt by issuing more debt, probably changing duration from short to long.

>>54846635
Its buy back of securities .So it probably means China ,Japans and other countries can dump their us treasuries and get their cash bacm. There would be dollar scarcity in US but in international market there would be more dollars so that would mean price of dollar should fall. Its my dumb assumption but nothing really works as it should nowadays

>>54846688
based

>>54846888
Of course it is a confidence game

>>54846657
When the Fed is buying bonds it adds them to its balance sheet and in theory holds them as debts against the government which the government eventually settles. The Fed has unlimited purchasing power so this is generally considered money printing, but the bonds expire eventually so it's effectively "temporary" money printing which cancels out eventually when the bonds expire. In an honest world, the Government temporarily borrows money by selling the bonds initially, the Government takes in taxes/profits in the meantime and then later uses those taxes/profits to pay back the debt at the end of bond expiry, therefore cancelling out the monetary increase for long-term stability. What the US has done since 1971 is to continually issue new debt to pay old debt, rather than to actually pay anything back.

When the Treasury is buying bonds it's not keeping them on a balance sheet, it's straight up printing money for the Government, creating a permanent increase in the money supply with no pretense that it will ever be reduced. They are claiming it will "increase liquidity" in the bond market because it will increase the volume of bonds sold, not because there is a lack of bonds being sold but because there is a lack of buyers. Doing this is admitting the free market will no longer allow the Government to pay back old debts with new debts.

There's two ways Government's default on debt: (1) announce that the debt will not be paid, fuck you; (2) announce that money will be printed to cover the debt. This is the formal announcement that #2 is coming.

>>54846769

PLEASE COLLAPSE
JUST FUCKING GET ON WITH IT
I WANT THIS COUNTRY TO CRUMBLE INTO CHAOS AND FEAR
I'M SO TIRED OF WAITING REEEEEEEEEEEEEEE

>>54846657
No one wants to buy 13.4 year bonds. They want to buy 10 year on the run Treasurys. So the Treasury Department will make these other bonds have adequate liquidity. It’s a nothingburger. But they were reluctant to do it because it admits the illiquidity of parts of the Treasury market.

>>54847559
>They are claiming it will "increase liquidity" in the bond market because it will increase the volume of bonds sold
Certainly it will, but you are right in the rest of the post too. There's no liquidity in the bond market because people want dollars, not bonds. It's an apparently quite paradoxical situation.

>>54847559
But why not option 1?

>>54847559
no... the treasury cannot just buy back treasuries without money. It will be financed by selling more treasuries. But they could buy short term bonds and sell long term bonds for example because long term rates are lower.

You were right when you said its when the fed buys bonds, that increase the money supply. Its not temporary because they can just roll the bond: the treasury just issues the same bond and again and selling it to the fed. Also know that any interest paid to the fed is the fed's "profit" and remitted (given back) to the treasury, so bonds the fed buys are all 0% interest.

>>54847587
>I WANT THIS COUNTRY TO CRUMBLE INTO CHAOS AND FEAR
Absolutely. We’re long overdue for a big one

>>54846758
pic related

>>54847672
just to add on that, its the fed that prints the money, and just keeps a list of in-effect 0% treasuries which may as well not exist as they have no purpose. They are essentially just an amount of debt the fed is allowed to issue to the public without congress's approval.

>>54846840
>are they paying debt...with US dollars?
That's how it's been for decades.
You will learn what fiat currencies real are.
You will be poor or rich depending on when you do that learning.
Everyone that doesn't learn and act on their own beforehand will be forced to learn.
>and PAIN will be your teacher
>xd

https://www.youtube.com/watch?v=iFDe5kUUyT0

>>54846840
I eill try to make it simple.This is a transaction between fed and primary dealers like Goldman Sachs and jpmorgan.
>Initially some time ago primary dealers bought securities and paid cash to the fed .Fed gave this govt to fund public programs
>Now the fed is going to pay cash to the primary dealers to buyback the securities

>>54846635
What do they mean repurchase? So they're buying gov bonds they've already bought?
This is just QE, surely.

>>54846635
Does this mean that the worst is yet to come?

>>54846758

>>54847664
Because there's no fucking way the best country, leader of the free world cannot pay its own debt (that's what default means).
Doing so would create global chaos

>>54846712
>piling debt on debt causes deflationary death spiral
>piling debt on debt is not what we've been doing for the past lifetime
>borrowing even MORE from the future is not inflationary because... well... because.. IT JUST ISN"T OKAY!?!?!?

>>54847415
how will there be dollar scarcity in the us? aren't they buying back those bonds with freshly printed money?

Test

>>54846635
For faggot still don't understand what this means:
This is exactly what the Japanese BOJ has been doing since the 90s bubble.

Make of that what you will

You dummies forgot the most important part.
How do we profit from this?

>>54847961
Sell all your US stocks and bonds and start buying Israel stocks

>>54847858
Those are boomer debts and they should die together with boomers.

>>54846688
>>54846884
I believe.

>>54846635
post a source faggot

>>54846745
It means kicking the can down the road as usual

>>54847559
Wrong
Buybacks of debt is funded by issuing more debt (buying old bonds and issuing new ones).

The treasury can't print money, only issue bonds and spend taxes.

Am I mistaken?

>>54848137
no you are right. people are confused. Maybe a simple way to explain it is the gov, minus the fed, can't print money. If they buy something they have to tax or sell debt.

only the fed can print money

>>54846970
Fucking hell, can we just do a few things:
1. Keep rates relatively high but start cutting spending (no more fucking massive welfare state we have more than half the country now not even paying into the system)
2. After spending cuts, increase wages, this will lock in inflation but at least get an economy going to start paying back massive debt
3. Start lowering taxes a bit to incentivize hiring with the higher wages
4. Lower rates so people have more money to loan against their raised wages and so banks can actually not have worthless fucking bonds on their ledger
5. Keep cutting welfare
6. When we have a REAL production based economy, now start raising rates slowly again.

This is all just a pipedream though, no politician will bring up cutting welfare spending, our shit democracy system incentivizes handing out free cash and prizes for "1 person = 1 vote" power that doesn't reward anyone for actually contributing the economy, in fact it just punishes them.

>>54847194
>The government transfers the risk of default/loss from its own debts by devaluing the currency and thus socializing the losses across the economy
This was essentially the Argentina 2001 default. It led to hyperinflation and 70% of the population falling below the poverty line overnight. Basically destroying purchasing power to handle the debt load.

The alternative debt default would be Greek 2012-style, where they couldn't control their own monetary policy (already joined the eurozone) and thus had to cut spending to handle the debt load. Led to 30% unemployment and no economic activity. Basically destroyed real wages.

>>54848218
Oh and fucking repeal the 19th already for fuck sake. Most retarded idea of the millennia.

>>54848218
>boomers voting to cut their own benefits
>niggers voting to cut their own benefits
>illegals voting to cut their own benefits
zero percent chance

>>54848218
The best policy is hard money because it forces an cost/benefit analysis to everything government does. The problem with fiat is that the government just spends money on shit because it thinks there is some non-zero benefit without actually considering the cost because they just print money to pay for it instead of actually having to find revenue to fund it.

>>54848218
>we have more than half the country now not even paying into the system
Good, we need to get that to 100%. Then the boomers and niggers will starve. Fuck this system.

>>54846635
>runs out of money by June 1st.
>printing more money to buy back the debt

i hope you faggots like washing aluminum foil.

>>54847672
>It will be financed by selling more treasuries.
so who is issuing those treasuries, the government? the fed? or the Treasury?

>the treasury just issues the same bond and again and selling it to the fed.
man this is some fucking BS, those kikes run different entities shuffling money back and forth between eachother, how is all of this not a giant scam? I just started reading about all of this but I'm 99.99% sure it's all a scam and accounting tricks to keep kicking the can down the road, I'm so tired of this shit

>>54846657
Zimbabwe

>>54848315
Fucking gangsters and their protection money extortion bullshit. Total Government Death.

Doesn't this mean they're planning to basically crashing treasuries next year? get treasuries back down to 1-3%, issue more debt to buy back old debt?

>>54848285
This. Apparently Biden also recently signed an executive order that classifies all federal department spending below 200mil as "economically insignificant" (it used to be 100m) and thus they don't need the program pre-approved. Now that alone doesn't sound too bad but then you learn the order also allows all these new, extremely loose defintions for "long term credit" for the department proposed programs, meaning essentially climate control bullshit. So now a shitty federal dept can start a 900million dollar program say that, "oh, the long term effects of this retarded solar energy farm will far outweigh these costs in 300 years" so they can write down the program as under 200mil and thus require no approval for it. It's all so fucked it's over.

>>54848319
Both fed and treasury are part of the gov. The treasury does more like the traditional finances for the government. It makes sure it collects all the money the government is going to spend by collecting taxes, and then the gap - the deficit - has to be filled by borrowing money - selling debt = treasuries.

The fed is on the side, and it runs the national shitcoin called the dollar. It buys stuff with printed money, and then sells stuff for money which it destroys (the money), that's how it manages the supply of the money.

The biggest thing the fed does is buy the treasury's debt with printed money. Every dollar of debt the fed buys is one less dollar the treasury has to borrow. And since the fed is part of the gov this is literally the gov lending money to itself. It has no affect on the private sector other than allowing the gov to print money.

>how is all of this not a giant scam?
Its essentially a ponzi scheme, for as long as the gov runs a deficit the money supply has to increase. The only reason it works is because the economy can grow at the same pace and so technical progression and productivity improvements can make goods/services cheaper and keep up with the money printing.

>>54847845
kek

>>54848245
I feel like I've been waiting my whole life for the boomers to die.

>>54848419
Technically true if you are gen x, millenial, zoomer, or alpha.

Slide thread

>>54848369
>crash.
Hard to say. If they are a motivated buyer they are going to have to bid the price higher than the market value. At the same time, the new debt they issue to buy outstanding debt will be LOW bid by the market. Unless of course the Fed buys high, which essentially devalues the currency. So I guess it depends what the central planners want to do for this particular post-shemitah jubilee year...

Either way this would make US future deficits exponentially higher. Buy high sell low, get huge interest bill. Downward debt spiral and empire collaps, WW3, Deagel 2025 population forecasts come true, UBI via CBDC, pods, bugs, owning nothing and being happy.

>>54846758
Don’t bully me Daniel!!!

>>54848419
The world would be a better place if everyone over 65 was culled. My parents included

>>54848190
Treasury can unironically mint new money out of thin air, legally. But they don't do it. That's what the trillion dollar coin is all about.

>>54847575
rofl Simpsons did it!

>>54846840
>how the fuck does that even work?

it just

>>54846657
>Make debt
>Make more, more expensive debt to buy back old debt

It means economics is now officially a religion. One of those retarded, non written ones from the middle of Africa.

>>54847194
>ok but why not just buy the debt with w/e funds available?
What funds available? The government runs a deficit every year. There are no funds available. Learn your basic shit man.

just kick the can down the road bro

>>54846688
This. The plebbitors replying to you are economically illiterate.

>>54847341
>This doesn't decrease the money supply
You’re right but it does lock it for a period time. I guess they hope it’ll decrease demand in the market? Nothing seems to be working the way they planned, unless the plan is madmaxx beyond thunderdome.

am i fucked if all my investments are in index funds?

>>54846840
2 negative numbers multiplied with each other becomes positive, it's simple math

can something just happen already? tired of this stagnation.

>>54848396
>It has no affect on the private sector other than allowing the gov to print money.
Commercial banks buy the bonds from the Treasury and sell them to the Fed at a profit, so the “printed money” does get out into the private sector. Even if the Fed buys bonds directly from the Treasury, the Treasury spends that money hiring people, giving loans, order more Raytheon missiles or whatever, etc. There is no government deficit spending that isn’t inflationary.

Is this bullish or bearish for BTC

>>54847720
>>54847914
The information I'm learning today makes me realize how much time I've wasting skimming off boards and not actively reading/watching. Thanks for sharing.

Also with today's financial climate where does that leave commodities? Is there any value in stockpiling goods before a collapse? Or only useful for necessary things like food or personal necessities through a rough time?

In other words can I turn physical items like tools for a profit after a collapse or at least be glad I have them preemptively for bartering and personal use?

https://www.ft.com/content/808f8b31-61ac-4f8b-aec1-744ea9b4b6b3

Is this the article? I literally dont even know what it means

>>54846716
It would be if they actually had the money to buy that debt. Instead they'll create new debt to destroy old debt so it's just optics really, meant to increase investor confidence. Look at us, we can totally pay all of our debt, you can trust us, is what they want you to think. What people will actually think is
>it's so bad that they need to worry about optics huh

Who do they even owe this debt to? What happens if they just don't pay it?

>>54847858
The Constitution also says the US will never default on its debt.

>>54846735
>think before you speak
>is completely wrong about everything

>>54847587
>>54847685
Look around. Banks are fucking collapsing! The hills are alive with the sound of reckoning. We literally are collapsing, sit back and enjoy the slow burn for now. We all know the fire rises.

>>54849632
Regional banks are all failing because they bought bonds with 0% yield. foreign governments own about 25%-33% of bonds.
If they don't pay it, no one ever buys a bond again. Which effectively means they'd have to rely on the Fed printing inflation for spending deficits.

>>54847559
So, move cash into physical assets like gold, real estate, bullets, 55 gallon drums of vaseline, etc.? How long until we see the phenomenon of people getting paid in the morning and rushing out to spend the money immediately before it devalues? How long before they ride in on a white CBDC horse to "rescue" us all?

>>54846657
>interest rates are low
>people and institutions with low risk tolerance park their money in bonds anyway just for barely any return
>those bonds remain perfectly liquid, so whoever needs actual money can easily exchange them for nearly their entire nominal value, effectively becoming a checking account with an asset. People are confident that they can hold them for as long as they want (until they mature) and sell them for basically as much as they paid for them at any point in the future
>interest rates go up significantly, now the new hotness are these newer, better bonds. Nobody wants to pay the nominal bond value for such low interest rates. Their nominal value drops
>Now to get the money they bought the bonds for, everyone needs to hold them to maturity.
>What if you absolutely need cash, though? The bond might not mature for another three, five, or even ten years or so. Interest rates are also up so the cost of taking on debt in order to keep the bond on your books instead of selling it is more expensive
>market becomes basically deadlocked. Nobody wants to buy the bonds for how much sellers want to sell them for. An asset that was relied heavily upon for its liquidity and store of value now does not hold the same amount of value in the secondary market AND/OR is no longer liquid if you can't take the hit on the nominal value going down
>markets lock, liquidity crunch. No money is moving
Enter the federal reserve, willing to buy these shit garbage (but reliable, for now) government bonds at a premium to help institutions and individuals remain afloat. Powell said he was going to raise rates significantly and fucking retards didn't believe him.
That's my take on it, I'm not a finance guy.

>>54846657
It means they will be desperate to get your guns

Funny how a bunch of incels are discussing this and trying to find solutions.

TRUST. THE. EXPERTS.

There's people wayyyy smarter than you working on this. You don't need to worry about it. Let the experts handle it and trust the process.

>>54846635
I don't understand macroenomics. Sometimes I think i need an MBA to browse this board.

>this many retards
USA Treasury is not owned by the gov.
Hasn't been owned by them since 1904 when they sold the treasury to foreign buyers aka jews.
This means the debt will go down because the treasury is taking it.
It will end up with the treasury in even more control of the US and even likely a power move later on to completely take over the gov by buying off the military.

Am I fucking retarded? Let me get this straight:
The US issues a piece of paper saying they owe you $1000
They then pay u back with another piece of paper saying they owe you $1000 and burn the first paper? Wtf what does this accomplish????

>>54848218
usa leftist political machine will let the country burn to the ground before they allow gibs to shut down. their entire control mechanism is founded on that grift, and others.

>>54850289
the treasury is not the fed you dolt, don't call anyone a retard if you're mixing that up

>>54848369
full disclosure: i'm a retard, but i think there are lots of other implications to institutional scale investors thinking that Treasury instruments are bad bets. it's not just currency value, it's sort of a "there goes the neighborhood" mentality that affects trade agreements, diplomatic relations and on and on, it's not just the currency. the usa itself becomes a bad bet, old agreements are rescinded and the world plays musical chairs where everybody jockeys for advantage. somebody correct me if i'm wrong.

>>54849223
nice
you're in charge of pr now
you can't possibly do a worse job than the clowns currently running this shitshow

>>54850368
The Fed reserve didn't exist until 1914, coincidentally the year the word war broke out, next.

>>54850289
Treasury is the gov
FED isn't

>>54850080
thank you anon. did people, or even institutions, just not anticipate rates ever increasing when they went all in on the low interest bonds? why did they do it?

>>54849371
Yeah you're technically right because there is a highly liquid market for treasuries. So the treasuries auctions, the market buys, the fed buys from the market.

What I mean is it when the fed buys a treasury, that treasury doesn't exist in the private market anymore, it exists on the fed's balance sheet but it could also just be deleted. It doesn't matter. If the fed wants to sell that treasury in the future the gov can just make new one.

What matters is the government brings in revenue from taxes, and spends more than that. It makes up the difference by borrowing money. No money is created yet. Its when the fed buys treasuries, that reduces the amount the government has to borrow from the private sectors, which means the money supply increases. In effect this is the same result as if the gov just printed the money out of nothing, its just an accounting artifact that a treasury sits on the fed's balance sheet.

>>54850080
thank you, i appreciate everybody who is trying to explain all this plainly. is it legal for whoever to create "synthetic" investment instruments based on these bonds? to get around functional limitations so they can continue to do shenanigans for awhile? they create all these bullshit casino shell games with other types of investements, is it legal for them to try that with government bonds?

>>54850029
https://www.federalreserve.gov/monetarypolicy/bst_recenttrends.htm
as long as this line is going down there's not any risk of hyperinflation.

If the fed comes out any time soon and does stimulus yeah then go all into gold or bitcoin

>>54850453
Its the "fed," its not an acronym, and it is part of the gov lol

>>54849469
One thing I can tell you for absolute certain is dont take anyone's advice from this board lol come for the memes only

>>54850505
Don't really know what you're saying. There are plenty of bond ETFs you can gamble on if you want. but they're not terribly popular because they move really slowly.

>>54850115
vinyl chloride
safe and effective
russian sanctions
nordstream sabotage
automated censorship
destroy industrial civilization because polar bears

nah
you trust the experts
shitbag

>>54850468
Literally nobody expected the fed to raise interest rates this quickly even though Powell was on the mic over and over again talking about how he would as soon as he decided to abandon the argument that inflation was "transitory".
I think that what's important to note here is that there has to be bottomless demand for the dollar, and therefore there HAS to be bottomless demand for treasuries. If there's not, then the american people have a serious problem on their hands. Luckily there almost always is. However, these people buy bonds under the assumption that they can sell them for about as much as they're worth at any time. This is no longer the case for a huge huge huge number of bonds.
Basically someone has to hold this bag out to maturity, and the federal reserve seems to be helping those that can't hold the bag to maturity by buying their bonds for dollars on the dollar, as opposed to the pennies on the dollar they'd get on the open market.

>>54850505
The problem here is why would you? Bonds 'effectively' have no risk associated with them, and they are the debt asset. People create investment vehicles with government bonds, but since the actual value of those bonds are always clear (unless there's a liquidity crunch), ...why would you? They have a flat risk profile unlike MBSes and an effectively guaranteed rate of return, that's like putting money on whether the sun's going to rise tomorrow, it's just not really a gamble like stocks or other types of debt assets.

Quick correction on my first post, the second time I used "Nominal value", I used it incorrectly. The bond's resale value is what goes down, its nominal value remains the same (I think? I may have it backwards.) Regardless, the important thing to understand is that an existing bond's resale value goes DOWN relative to its nominal value as interest rates rise.

>>54850517
>>54850549
thank you

>>54846816
Lol that story in the gospels is a representation of Titus driving the Jews out of the area in front of the temple. You’ve fallen for both Roman and Jewish propaganda

>>54847559
Thank you. Ur posts and the replies it generated helped me understamd this situation
>>54848315
Taxing lottery gains is crazy because the government had 0 part in it, how is your personal luck taxable?

>>54850535
Independent agency aka they do not take orders from the central gov.

>>54850593
>The problem here is why would you? Bonds 'effectively' have no risk associated with them, and they are the debt asset.
i don't know why they convolute investment stuff, but they do. i assume it is to confuse peasants like me. also, if the government is having to buy it's own bond issues, that sounds like the auction failed and that would be risk, it would mean these things are not without risk anymore, right? i'm not asserting that, i'm asking.

i know the gold bugs (peter shiff, et. al.) are a broken record of doom, but they seem to talk about things in a way others don't. they put out a movie "The End of the Road: How Money Became Worthless" and in that movie they described a "Failed Treasury auction" and said that would be the event that would precipitate a crisis that would lead to the destruction of the dollar. I'm not an expert on any of this, I'm just trying to figure it out.
https://www.youtube.com/watch?v=NJd6RKsY5H4

>>54850535
federal reserve is a private entity
it has shareholders

>>54848396
>the economy can grow at the same pace and so technical progression and productivity improvements can make goods/services cheaper and keep up with the money printing.
At a giant giant giant fucking cost to Americans in inflation and a giant giant giant giant giant giant cost to the rest of the world partaking in this shitshow.
It's one giant stinking tax, like a tick that managed to attach itself between the heart and arteries.

>>54850699
Typically bankers repackage, collateralize, and otherwise create synthetic investments because there's risk they want to hide, sell to a retard, or bet on. There's not much of that in the US treasury bond market.

https://www.youtube.com/watch?v=EpMLAQbSYAw
Even though I don't agree with all of it, I highly recommend this documentary about fed policy over the last decade or so.

>>54847559
>When the Treasury is buying bonds it's not keeping them on a balance sheet, it's straight up printing money
This is incorrect. The Treasury does not have the power to print money (trillion dollar coins aside). The plan is to repurchase 2020-21 long term bonds that pay scant interest and sell T-bills to finance it.

>The programme would allow the Treasury to buy back older bonds, which are typically harder to trade, from primary dealers — banks that act as market makers for the Federal Reserve — and help improve functioning in some corners of the market. The buybacks are expected to help with cash management, allowing the department to issue more consistent levels of shorter-dated debt. This would be the Treasury’s first buyback programme since the early 2000s, and comes after liquidity — the ability to easily buy and sell an asset at prevailing market prices — deteriorated late last year to its worst levels since March 2020.

>“We think this will support Treasury market functioning because it provides market makers [with] certainty that there will be an end buyer that will come into the market that is willing to buy dislocated securities along the curve for a price,” said Mark Cabana, head of US interest rate strategy at Bank of America.

https://www.ft.com/content/808f8b31-61ac-4f8b-aec1-744ea9b4b6b3
https://home.treasury.gov/news/press-releases/jy1460 (under Buybacks)

The UK did something similar last year.

>>54846840
They are just readjusting the maturity structure to enhance liquidity in the Treasury market. The amount of government debt does not change. The money supply does not change.

>>54848396
The Fed only monetizes government debt during QE. We're in QT now, so the Fed is reversing that monetization. Outside of QE, the Fed doesn't print money -- only commercial banks do so as a result of their lending operations.

>financial jews love to play games with treasuries as collateral
>the older the collateral is, the more jewish games have been played with it
>smart jews only take pristine collateral, there is a premium on newly auctioned treasuries (think of it like untainted freshly mined bitcoin)
>US treasury department knows the system is weak so they will trade their pristine fresh-printed debt for old worn-out toxic debt
This is basically a nothingburger.

>>54850731
thanks for the reply, i'll check out the video today

So how do I profit off of this?

>>54850130
I have won debates against friends who have actual business degrees by using knowledge I absorbed through /biz/posting for 5 years.

>>54850299
The first piece of paper has an expiration date, and that date is today.
See where they're going with this?

>>54850882
>there is a premium on newly auctioned treasuries
The "premium" is just the higher yield. Nobody wants 10 year bonds from 2020 that pay 0.5% interest when 3-month T-bills currently yield 5.25%.

>>54850931
You misunderstand, the "premium" I am referring to is the difference in interest rate between a treasury at auction and one bought on the secondary market (even if the maturity dates are nearly identical). e.g.3 month t-bill rate is 5.2% but entities are willing to pay 4% if they get it directly from the government.

>>54850931
Or if they do, they want them for basically nothing compared to what they were worth before. Something that was once so safe as a store of value is now worth literally pennies on the dollar.

>>54847072
>"Sorry Inflation, but we decided that you don't exist for the next 90 days, nothing personnel"

>>54850130
It's mathematical sophistry desu
which is why it works, just like the law, and why Big Religion worked when goys used to be illiterate.

>>54846657
It means link is going back to 20 cents.

>>54846635
It's meaningless. The debt never existed or mattered. Why talk about it at all? Bread and circus nonsense.

>>54850956
>3 month t-bill rate is 5.2% but entities are willing to pay 4% if they get it directly from the government.
I've never seen evidence of a discount like that, can you cite a real world example? I know the banks like going direct because they can collude with the other institutional bidders to manipulate the par value.

>>54850958
>Something that was once so safe as a store of value is now worth literally pennies on the dollar.
the fact that it is possible this can happen means that bonds are not without risk, contrary to the common wisdom, correct? i'm not trying to play gotcha games here, but rather, it's my suspicion that even the people who designed these games don't really understand all the ways the game itself can behave. this is before we get to any discussion of the effects of corruption and fraud.

it makes a difference to me whether it is 1) a crooked game run by crooked people that is, nevertheless, still under positive control by *somebody*, versus 2) a game where *no one* really understands how to control it, and it careens into the future and is fundamentally not a predictable system.

>>54846884
ayo hawl up
so it's basically a default?

also the fokin digits in this thread

>>54850115
You're like a little mouse telling us the cats are going to save us.

>>54850556
>polar bears
Aren't male polars mating with black and brown bears because of how many polar bears there are?

>>54850958
>Or if they do, they want them for basically nothing compared to what they were worth before.
Right, I mean the banks that bought them at par value in 2020 want to get rid of them because even when holding them to maturity their yield may not be enough to cover their own interest expenses to depositors. Of course, they can't get rid of them in the current interest rate environment without becoming insolvent on a mark-to-market basis. Hence the Fed's recent liquidity programs.

>>54851110
>the fact that it is possible this can happen means that bonds are not without risk, contrary to the common wisdom, correct?
It is certainly risky to buy long bonds at the top of the bubble in 2020, with yields at historic lows. Banks who did so were run by morons.

>>54847575
Powell and the Fed likely won’t accept that and Yellen knows it, so that’s not an option

>>54851210
It's not up to him, though. If Biden wants it to happen, it will happen. He will obviously try every other possible solution first. But he will do it if there is no other way to avoid default.

>>54851149
i couldn't tell you
i left the dating scene years ago

>>54847575
what if someone drops it into a drain?

>>54851105
Okay I mis-remembered, my bad. What I was thinking was how in recent months t-bills would go for significantly less than the reverse repo rate, indicating a need for collateral from the government regardless of the potential loss in yield.

https://www.treasurydirect.gov/instit/annceresult/press/preanre/2023/R_20230105_1.pdf

For example, on January 5th the RRP rate was 4.3%, and even the "high" rate was only 4.1% for 4 week t-bills (with the median lower of course). The current reverse repo rate is 5.05% and 4-week t-bills are going for a median of 5.5%, which is higher (and normal).

https://www.treasurydirect.gov/instit/annceresult/press/preanre/2023/R_20230504_1.pdf

Sorry for mixing concepts up, I was working from memory.

>>54846635
My last hopes in this life are in my bags, as long as they are green I will continue to have faith

>>54850517
>as long as this line is going down there's not any risk of hyperinflation.
btw, that link shows a graph for "Total Assets of the Federal Reserve" which has gone *up* 800% since 2008, the trend is up, not down. was the the graph you meant to link?

>>54851328
I think you're missing the point. The chart is currently trending down, we are not going to get hyperinflation as long as the fed continues QT.

>>54846827
Yes. You see, when bonds are bought by the government, velocity increases, therefore Pepe coin will be the most important commodity that has ever existed.

>>54851247
they make a new one and cancel the previous one. The only backing it has is mutual agreement

>>54846635
>print money to buy debt
>your own debt
>....
>no fucking profits what so ever

>>54846745
It means this is the moment to move out most of our assets into cryptos

>>54850029
I'd say two years.

>>54851406
>https://www.federalreserve.gov/monetarypolicy/bst_recenttrends.htm
the part that is trending down is the most recent 1 year out of 15 years of data, most of the trend is up. you're telling me this is like a warning light, and it's been flashing red for 14 years, but in the last year it only flashed for a few months, so there's no danger? to me, that graph shows a problem that has been accumulating for years, i'm not sure i buy the idea that because it has recently declined by 5% or 10% of it's total amount, that means everything is ok? "the fed accumulating assets means the dollar cannot hyperinflate" is not a proposition i am able to evaluate, maybe it's true, i don't know. :) i just want to not eat bugs and live in a pod in the dark. :)

>>54849469
Checkout PMG they will guide you

>>54846657
It's called monetizing the debt.

>>54851696
i should say that i don't know that graph shows a "problem" that has been accumulating... what i meant is, if the slope of that line indicates possibility of inflation, that's a problem. i don't mean "the federal reserve having assets is a problem".
this kind of stuff is why talking about money drives me crazy lol.

>>54849632
from what I understand the whole debt thing is governments issuing and selling bonds or t-bills etc, so you buy a bond worth 100k and in 10 years or whatever the government is supposed to give you back that + interest so it's basicly like government borrowing money from you or some company or some other country's government, if they say fuck you and don't pay it then nobody will ever want to loan them any money/nobody will want to buy the bonds so they will have to try to sell bonds with better interest like 15% instead of 4%.

>>54849632
https://medium.com/fintechexplained/what-happens-when-a-country-defaults-b6c74e07ffce

>>54850080
>Nobody wants to pay the nominal bond value for such low interest rates. Their nominal value drops
I thought you can opt out at any point you just wouldn't get any appreciation, I think that's how it works in my country, how much are they under water if they try to sell now let's say $100k bonds at almost 0interest?

>>54846635
"...The path of the Lord of Chaos. Burn the Erdtree to the ground, and incinerate all that divides and distinguishes.
Ahhh, may chaos take the world! MAY CHAOS TAKE THE WORLD!

>>54846635
This is not a crash this is just a retest of the trendline. Don't panic don't sell. I'm comfy with my AVAX bags.

>>54852240
I don't know exactly, but there's probably some kind of formula. Since no matter the yield the calculated risk on treasuries are the same, I'd assume a secondary market bond buyer would want a discount that compensates for the opportunity cost incurred by buying the lower yield bond instead of buying one at a higher yield. Let's make this simple and say that you have two 10yr treasuries that mature at the same time, both at $1000. One returns 1% a year, the other returns 5%. Assuming that you're holding them to maturity (because someone is), the 1% bond would go for around 400 dollars LESS than the 5% one, even though their nominal value is the same, since the 1% bond returns $100 from issuance to maturity, and the 5% bond returns $500 over the same time period. Again, very simple, but now you kinda get an idea of what mechanism causes the bond's prices to drop.

>>54846657
Bonds are a tool to keep money out of the market to reduce present day inflation
> They essentially exchange inflation today to inflation 20 years from now
Buying back bonds means they must get the money from somewhere now
> Either from printing or taxes (0% chance in election year)

TLDR inflation

>>54846884
No. The fact no one knows shit means we still have a good decade of pumps to go

>>54850080
I think the problem is that even the smart people didn't believe him. Or, they did, and then lied through their teeth to everyone else about not believing him. There's a major moral hazard where the people we rely on to understand the complex environment of the financial market have a massive incentive to tell us sweet lies while they trade on the truth. And they do, because they're leveraged up to their balls and can't afford to lose their edge. Literally. Well, the last part, at least.

>All of my money is allocated in a memecoin (PEEPO)
>If it pumps im rich
>If it dumps im broke and homeless
Im retarded

>>54846716
>fiat burn mechanism.
Actually, pumping up crypto, drawing in normies money, and then tanking crypto prices and wiping the normies out financially is the fiat burn mechanism.

>>54850029
around 336 hours

>>54846769
>Finance is the dumbest fucking Calvinball shit ever.

Well, the money itself is fake so of course the system built around it is fake as well.

>>54852829
Are houses crypto? What about cars? ...Actually I don't think I'm joking when it comes to cars.

The computer tells me what to think.

It says there will be more inflation on top of the current inflation. However, we have to think about the current overall state of the economy.

In summary; Pack your bags, hyperinflation 2024 as per Government policy.

>>54852945
Yes, if they print money to pay the debt there will be inflation. If they don't it will cause interest rates to go up.

This actually makes sense, I didn't think they would be able to raise interest much higher because they value corporate more than the workforce. So they probably will print.

>>54846840
cool it with the antisemitism

>>54846745
Jews are in control and they haven't taken a single L in like 500 years so I wouldn't worry about it

>>54851149
Soon they'll be dating troon bears since they act more feminine

>>54846971
discretionary spending will be gone by 2030 because of medicare alone
but more interest on debt moves the sword of damoclese even closer

>>54849469
>where does that leave commodities
commodities in general are the place to be long-term. Short-term, probably only gold. There is severe demand destruction incoming which will pressure energy downwards (see recent OPEC oil production cuts).
The dream set up is to have a homestead/ranch in a rural area in a country where the government isn't up your ass and constantly trying to kill you (drafts, taxes on cow farts, etc.).
Yes to the tools question.

>>54852971
sooo stocks good?

>>54849469
also, for a compact run down (after watching Mike Maloney's hidden secrets of money) of what's happening right now, I recommend reading Arthur Hayes' blog on Bitmex (yes, le epic based black man but I dare you to find any lie in the posts "Exit Liquidity" and "Kaiseki")

>>54847641
>country A needs dollars
>country A can't buy dollars through fx
>country A buys 1 month t-bills to get the dollars as quickly as possible
>1 month price moons
>interest rate falls
>falls under 10 year
>inverted curve is inverted
>spooks countries B through ZZZ
>countries B through ZZZ all do the same thing

Is this the gist of what's been happening for 10 years?

>>54852932
Can you live in crypto?
Can you drive crypto to the store?

>>54846948
>you can't erase debt with more debt.

When you multiply 2 negatives it makes a positive though

>>54846971
>How long till interest payments are as much as the government gets from taxes, 10 years, 15?

I'm actually curious about this a well. What does the debt have to be at before the interest payment is the same as current tax revenue?

>>54848889
>Treasury can unironically mint new money out of thin air, legally. But they don't do it. That's what the trillion dollar coin is all about.

It usually doesn't end well for presidents who have done or consider it I'll add

>>54847072
I see you mr keynes

>firms go long on treasuries
>interest rates go up
>bonds become worthless
>firms start going out of business
>fed announces they will buy worthless bonds

So this is a bailout without calling it a bailout?

>>54854245
You're getting at nominal value and the answer to both questions is a resounding, "Maybe, if someone maintained them well. Otherwise, no, particularly if the expense to make them livable/drive-able for a reasonable period going forward is more than they're worth on the market."

>>54850931
Bonds get rehypothecated multiple times through financial engineering. Then, like paper gold, when the music stops before the next round you can't prove who owns that worthless piece of government shit and you may even have to sue to protect your "ownership" of that used up whore T-bill.

>>54846840
You’ll see a jew laughing and rubbing his hands. Fuck me sodeways, my pension won’t be worth shit.

debt finna

>>54854708
>Thanks for working hard your entire life while we eat the underwater bugs and take credit for other's effort
>Now get in ze pod

>>54854324
interest payments rose from 220B in 2015 to 475B in 2022. Assuming generous conditions of a smooth exponential curve and tax revenue growing from 5T to 6T, roughly 8 years. Also assuming there's no major crises going on, like a huge war or total internal financial meltdown <:^)

Sounds like boomers refinancing their home

What happens to credit card debt and mortgages in a hyperinflation scenario? Do they just say fuck it, it’s not worth pursuing since the value of that money is basically zero anyway?

>>54855119
Two scenario. It becomes worthless and get paid back pennies on the dollar in the new inflation adjusted value of the currency.

Or the government issue a new currency and convert all debt to the new currency, effectively making all non asset owners penniless, and destroying their reputation to anyone and everyone.

Both scenario leads to massive social unrest.

>>54846657
it means we have a solid chance at a new gold ath tomorrow. silver will be soon to follow. hold onto your asshole

>>54848330
Bazinga

>>54847074
I’m guessing you don’t think about much

>>54855190
>It becomes worthless and get paid back pennies on the dollar in the new inflation adjusted value of the currency.

If I’m understanding you correctly, the debt holders get back pennies on the dollar. This sounds like great news for most people, since most people have a lot of debt and few physical assets. Why would this cause unrest?

>>54855054
Thanks for the info. I think they can get it done in probably in 5. Kek If there is one thing the government can do well its adding to the debt.

>>54846635
Hope you're balls deep in crypto cuz it's gonna explode like nothing you've ever seen

>>54855190
>Or the government issue a new currency and convert all debt to the new currency, effectively making all non asset owners penniless, and destroying their reputation to anyone and everyone.
ding ding ding. that's why you have to buy metals, crypto, guns & ammo, rural land & property if you can afford it, dry food, durable basic goods, etc etc. they will wipe out the USD and replace it with a heavily monitored fedcoin in a second if they think they can get away with it. these people don't even admit they were responsible for 2008, let alone anything going on now. their hubris knows no bounds

>>54847559
So we Zimbabwe soon?????

>>54855284

>work whole life for money
>sorry goy that money is nothing now
>why are you angry goy

But more importantly if the government shows weakness in not being able to keep a coherent monetary system in place they look weak and the "unrest" is because the government lacks legitimacy and people start thinking they can do better.

>>54846635
How do I profit from this

>>54850652
Because it can and you vil owm nozzin und you vil be happy

>>54855490
>your savings are worthless but you’re free of debt
Unironically a great deal for most middle and many lower class Americans who are debt slaves and without any assets. These people are far more common than those of us who have a substantial amount of money saved and most of our assets payed for. I suppose that’s why option 2 is far more likely.

>>54855545

Ah you're low iq and can't think past your own debt. Best leave the talking to grownups :)

>>54846635
It's time to invest more in pepe

>>54846688
More likely the situation, and I pity those still holding cash instead of stables that can be staked on yield aggregators like Beefyfinance and SpoolFi to help hedge against inflation

>>54855557
The question was why would people be mad at their debt being wiped away. They simply wouldn’t.
>b-but the government has shown their incompetence
Them being upset about the other affects this would have is not the conversation at hand.

>>54846884
all they have to do is keep the poors beliving. there too many stupid and poor people to stop the grift.... so far.

>>54855630

Nigger you are boundlessly fucking retarded. Are you even able to hold a job?

>>54855676
Who would waste calories to slave for somebody else in this socialist system.

>>54849210
yes but less than anon in cash. look on venezuela stock market. went parabolic but still not enough. anon will buy 1 chiken with its cash. you will survive longer maybe like 100chicken

>>54855676
Very well thought out and intelligent answer, as I’ve come to expect from you.

>>54855688

confirmed for retard

>>54855719

You're either a shitty chat bot or a person that is too stupid to understand basic cause and effect and therefore a waste of time. If you're an actual person the best advice I could ever give you is to understand that you are not even close to as smart as you think you are.

>>54855571
>that can be staked on yield aggregators like Beefyfinance and SpoolFi
For your own sake I would like you to say this out loud. Take note of your own gut reaction.

>>54855741
>if I call everyone a bot or a retard, I win
I understand that you believe people will rebel due to the catastrophic effects of hyperinflation. My point was only that preventing people from becoming homeless and allowing them to keep their few assets would be one of the few things the government could do in this situation to prevent them from rebelling. Im not sure why you’ve got such a stick up your ass or have an autistic need to call everyone a retard who has an opinion that slightly differs from yours.

>>54855741
Anon my potential productivity has been collectively collaterized by boomers years ago, it's more rational to drain the ponzi vaults they prepared for themselves through welfare programs than actually being productive for a smaller pay out, while having to also pay taxes on top

>>54850368
thx for not being a retard. this thread is a shitshow....people mix fed, treasury....1 comment out of 5 is useful.

it s amazing....80% of this thread is full retard

>>54846635
>Get in faggot, we're crashing this economy with no survivors.

>>54846657

>>54855779
Anon is right faggot, it's also stables over fiat for me anytime any day

>>54856107
For real, how do these niggers even breathe when they don't know the Basics of the Basics.

>>54847575
>print 1 trillion platinum coin
>interest is 5%
>oy vey, where’s my 60,000,000 in interest?

>>54854566
These yakub memes low key slap

>>54846657
1000000% interest. Everything will continue to suck for you and you will NEVER EVER EVER get rich. You will own nothing.
Your grandkids will have to live through the dissolution of NATO, global calamity.

In my educated opinion, nothing will happen. Nothing ever happens.

Funny it's again Israel-o-clock
Morning in Tel Aviv

Wait till the war bonds hit the shelves.

>>54855337
This. JPM 800m ozt silver hoard. S-USD vs. G-Ruble, G-Yuan, G-Rupee etc.

>>54856446
>yakub
Im fuckling dying

>>54846635
What I don't understand is that aren't these actions basically proving just how shaky our entire financial system is? That even increasing interest rates a few percent points is enough to slam thee brakes into a standstill? And that increasing rates no longer works when the Fed/Treasury still ends up footing the bill for short-sighted bond holders anyway. It's like we have to baby-sit and coddle the entire global economy because the alternative is too dangerous for our leaders.

>>54846745
>>54846657
lol dumb nigger bondlets let me explain it for you. buying bonds is similar to buying shit coins. buying makes the price go up and reduces the supply. this makes the bond portfolios of jew bankers more valuable so their bankerinos stay afloat. it also reduces the effective interest rate of notes on the secondary market. yes, it's still all Jewish funny money and we are all probably being screwed somehow. just forget about all of this nonsense and have sex.

>>54856645

So money isn't real. And once you truly accept that all of this is made up bullshit you realize that any monetary system is shaky because it requires everyone to play make-believe. Every monetary system in the world can go up in smoke the instant people stop believing in it.

Faith and trust are the only thing that keep a monetary system going and if that is squandered your civilization faces collapse. People really don't seem to understand the gravity of the situation we're in and keep saying retarded shit.

>>54853848
Yes, stocks good

>>54850115
if you're not a housewife of some sort, idk the point of this post.

>>54856701
Some understand very well and are latest since the failed coof putsch actively trying to crash and kill the trust and with it those the most invested, jews and opportunistic traitors in politics economic and civil society

let's wipe out this faggots

let's wipe out these faggots

>>54848218
You can't just take the bread and circuses away. Powers that be know this.

>>54850914
>>54850299
Who's buying these papers and why?

>>54856975
Boomers pension funds. They can't have the ponzi crash because they relied on it for their retirement and now expect their children to continue the ponzi. You would be a fool if you would

>>54856759
When Total Jew Death?

>>54857057
When your most docile well meaning person in your social circle calls fiat a shitcoin ponzi and would rather buy a bag of manure instead of putting it in a fractional reserve bank. When the most hard working slave you know cuts his time because he doesn't trust his pay check to buy him calories. Then we won

buy$drugs and zjz are the same person from the wsb meme coin shit

>>54857092
>>54857092
That's what the Jews want too; fly the coop once the blood runs cold. Still it would be fabulous to watch them flee for their lives.

>>54857131
The jews as a pure rent-seeking race relies on those golems trusting and believing in the religion of numbers of account they control. Contrary to /pol/ believes, a rent-seeker doesn't survive in an Anarchic environment as a collectivisation of risks and costs is not possible let alone generating profits from it.

>>54847858
>>54849801
the US gov has defaulted on its debt's 3 times in the last 100 years

>>54851122
>so it's basically a default?
Yup
>also the fokin digits in this thread
Indeed good sir

>>54856881
I see you’re a man of culture as well…

>>54846635
Nothingburger

>>54857177
Checked. As a good American I distrust all kings but we need them back again. The United States is older than 1700; we can be nations of ten thousand kings again.

>>54857247
Thanks for this thought. I think I misjudged social media and the pseudo narcissistic effect it has on golems. Shouldn't shame attention whores but encourage them

>>54846635
that happened in argentine 1 month ago and they have 104% inflation O.O

>>54857331
All those South American that bought dollar to hedge their shitcoin will either get fucked twice or buy btc. El Salvador will ironically make it

>>54847559
That is assuming someone is going to buy those shitty bonds in their bi-monthly auction. Check the TGA balance. This is the last move they got.

>>54848003
boomers fucked 10 generations of americans because of thier insatiable greed and they dont want to die

>>54846635
What this means is that rates are coming down sometime between now and next year. The Treasury is going to borrow to swap high yield bonds for lower yield bonds. Better position yourself accordingly.

>>54854199
Maybe not the past 10, but in times of acute stress, yes.

>>54847587
FUCKIN B A S E D

>>54848218
And why not just go back to gold standard ?

>>54850517
>as long as this line is going down there's not any risk of hyperinflation.
Kind of. But not quite.
If you are sitting in dollars then that line is a good thing to see. But if you are sitting in shit tier currencies like TRY or PKR then Your central bank will have to print to cover the Eurodollar debt taken on by Your fininst and commercial banks.
So just by looking at that line you can be sure that there is no crackup boom in dollar terms but you might very well have one in your local currency.

> If the fed comes out any time soon and does stimulus yeah then go all into gold or bitcoin

Or if you do not have access to USD and have to make to with ARS or some shit then it is still a good idea to go into fungible crypto or PMs.

>>54857928
>And why not just go back to gold standard ?
What are you? Antisemetic or something?

>>54857482
>What this means is that rates are coming down sometime between now and next year
Yea I am thinking the same. It is getting too hot for the rates to be this high.

>>54857247
>As a good American I distrust all kings but we need them back again
>We need to have a kike in control pretending to be goy instead of thousands of kikes running around
Yarvin, is that you?

>>54855119
Why do people say inflation makes their debts go away?
I don't magically get raises when the dollar inflates. In fact it's a well-known scandal how wages haven't kept up with inflation at all.
Yes my debt is technically worth less but I don't have any additional ability to pay it because my income hasn't gone up. If anything, I'm just poorer because the costs of goods and services go up much faster.

>>54857131
They'll get away with it. The country will be engulfed in race wars (this is by design) and the architects of the disaster will sail away on yachts.

>>54848218
>Fucking hell, can we just do a few things:
>1. Keep rates relatively high but start cutting spending
I don't see any way spending gets cut in an election year.
>2. After spending cuts, increase wages, this will lock in inflation but at least get an economy going to start paying back massive debt
Increasing wages lead to something called wage-price spiral. Unironically, the best thing gov could to is to decrease the rate of wage increase.
Fress of the press: https://www.imf.org/en/Publications/WP/Issues/2022/11/11/Wage-Price-Spirals-What-is-the-Historical-Evidence-525073
>3. Start lowering taxes a bit to incentivize hiring with the higher wages
Also this might be good idea in the election year. Hire with higher wages leads to culling a few.. now that the productivity is tanking.
>4. Lower rates so people have more money to loan against their raised wages and so banks can actually not have worthless fucking bonds on their ledger
Lower rates lead to amerigoys have more money but also leads to a higher Eurodollar debt.. so more pain for longer and for more people.
>5. Keep cutting welfare
:)
>6. When we have a REAL production based economy...
We might go in this direction after the war with China
>This is all just a pipedream though, no politician will bring up cutting welfare spending, our shit democracy system incentivizes handing out free cash and prizes for "1 person = 1 vote" power that doesn't reward anyone for actually contributing the economy, in fact it just punishes them.
Jup.

>>54846657
they can print as much money as they want but you still have to pay taxes

>>54846769
that's a really good way to put it

>>54849632
>Who do they even owe this debt to?
bank deposits
boomer retirement funds
cayman islands, china and BOJ

>>54858194
To where? Russia and china? Have you seen what china does to its billionaires? Russia hare traitors even more. Israel? They’ll be concentrated among a billion people that hate them. Once america falls, it’s over. They killed their golden goose. Never kill the golden goose.

>>54858697
have you heard of the "scorpion and the frog"?

>>54846789
E. G. Less investmentd, more greenwashing, less risk capital, less produced goods.

>>54846839
Unironically betting on cbdc will bail their sorry assess.

>>54847559
>When the Treasury is buying bonds it's not keeping them on a balance sheet, it's straight up printing money for the Government, creating a permanent increase in the money supply with no pretense that it will ever be reduced. They are claiming it will "increase liquidity" in the bond market because it will increase the volume of bonds sold, not because there is a lack of bonds being sold but because there is a lack of buyers. Doing this is admitting the free market will no longer allow the Government to pay back old debts with new debts.
Thanks.