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/biz/ - Business & Finance


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30225690 No.30225690 [Reply] [Original]

The US 10 Year Treasury has been much higher as recently as 2016. Why would it increasing mean so much trouble?

From what I gather, it's a combination of a few factors, right?
>printing money last year
>~20% of all USD ever created was made last year
>many over valued companies as global supply chains are locking up
>companies with lots of debt with huge evaluations
>big money isn't confident in the US dollar as a store of value
>big money isn't confident in the debt of companies in the US
>US is losing it's global leadership role

So the bond yield increasing is just pushing it over the top and the FED confirming everyone's suspicions that things really are unstable currently.
Am I misinterpreting this?

>> No.30226222

>>30225690
No, you're pretty much spot on. The fed will never admit it and you have to reject the economic theory they teach in colleges known as the (((modern monetary theory)))

>> No.30226605

>>30226222
mmt is fine as far as it goes, it just observes the fact that the federal government can print its way out of a deficit (but this causes inflation thus redistributing wealth), but mmt has its own dumb unnecessary vocabulary to express this

>> No.30226625
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30226625

>>30226222
Checked
Now I just need to figure out what to do with my money. I'd really like to hear what you anons think.
Any ideas for this? I'm thinking about leaving some in my regular stocks but just minimizing my positions. Then having a good amount in the banks to:
>make investments into getting more certs (IT)
>having money ready to pay for SHTF goodies
Thoughts would be appreciated anons.

>> No.30226725

>>30225690
Commodities boom INC?

>> No.30226837

>>30226625
Why save cash for shtf when you can just buy the items you need now?

>> No.30226850

>>30225690
It's inflation expectations.

You need to be rewarded for holding USD in higher interest rates because the currency is losing value. Even 1.5% is negative in real rates, expect it to go much higher.

The real question is how should we invest in this environment? Stocks, bonds, gold all look bad. Maybe crypto will survive. Value companies will do well (if there are any left). Oil and other commodities excluding precious metals will do well.

>> No.30226861

>>30226625
Honestly investing in intellectual capital is always the best bet for a long term investment. If you can work and get paid you're actually gonna be able to grow your capital base a lot more than playing with stocks. Stocks really grow what initial investments you put in.

>> No.30226885

>>30226605
>print its way out of a deficit (but this causes inflation thus redistributing wealth)
This is why I'd like to keep at least some money in something that would appreciate due to inflation.
But with the bond yield increasing and big money retreating some of their positions makes it seem like the stock market wont even fight off inflation as well as holding it in the bank desu.
I really believe that the government is going to go hog wild and print money to blow air and prop up the economy as best they can.

>> No.30226951

>>30226625
If you're an american like me, the answer should be simple. Think about the main reason why america was founded.

Real estate. It's the only asset the end of the day that truly matters. There are a finite amount of resources on the planet and a finite amount of land which contains said resources.

>> No.30227127

>>30226951
Real estate performs like a bond because it's purchased using debt, and therefore has been increasing for the past 30 years as interest rates go down.

When interest rates go up real estate prices will go down.

>> No.30227353

>>30226850
Just buy bitcoin
Its that simple

>> No.30227440

>>30227127
Truth
>>30226951
Im really scared about gov taxation on land its what commies hate most

>> No.30227846

>>30227353
No. I bought when bitcoin was below 10k. I'm not pumping the CCPs bags

>> No.30228272

I'm going to give the government just this one weekend to try and at least address what they're going to do in order to help pump up the economy.
This situation has been looming since January and I'd argue in 2020 as well. The administration has no excuse to not address the economy and try getting some confidence put in there. Especially after a month of solid loses and 10 yr bond increases.

If they don't address it properly and their only "solution" is increasing 10 year yield bonds, then I think we can assume that they believe they'll only make things worse if they act. They'll allow a correction of sorts. Big stock dumps to follow if they don't do something.

Interesting all of this happening as China keeps getting good press about their economic future as the next power house of the world. Perfect timing. But I don't believe China is a safe investment for one second. And I think much of the big money thinks the same too.
>>30226837
Good point. I've been wanting to buy an IWI shot gun since last year, maybe I should act on that lol
>>30226861
Agreed 100%. I hope everyone lurking is paying attention to this.
>>30226850
I'm going to look into this all.
>>30226951
Buying a home is the end goal. Currently saving for it right now to raise a family in.
>>30227127
The FED raising interest rates in the same year that the 10 year bond yield is increasing would destroy things like we've never seen. But I wouldn't put it past them desu.
If things get really bad, maybe they'd want to just rip off the band-aid.
I guess as long as you're paying ahead of your amortization chart then you can cut down on the cost of interest over time.

Thanks anons. This is all helpful

>> No.30228947

>>30227127
Stop calculating the value of real estate in fiat...

>> No.30229192

>>30227127
>because it's purchased using debt
I think you meant -can be purchased using debt-. Cash Purchases frequently take place as well. Fluctuating interest rates are cyclical, at the end of the day most real estate appreciates at a steady rate over a long period of time. Additionally resources on land can also be sold or the land itself can be used to produce resources.
You need to expand your time horizon from 1-10 years to 50+