WHY ARE BOND YIELDS STILL RISING??? I WAS TOLD THE INFLATION HAS SUBSIDED!
WHAT'S GOING ON
It did not work the way they thought, and the Fed won't play ball on lowering rates. Didn't you watch the Powell announcement?
Most important categories recorded a +5% inflation.
theyre going bancrupt
Fed won't play ball on lowering rates.
If the budget deficit is not put under control, the FED will be forced to lower interest rates
Yup, unless they cut aid to Israel they will go full argy economy in about a decade.
High interest rates are good. Same with smoking cigars indoors. It builds character. Man the fuck up and contribute to society instead of riding on lended money and being a living tax deduction.
Chinks and Japs are dumping to increase yields
Man the fuck up and contribute to society
you mean the kikes
fuck that
rob from the system
cause they all are
Fed has no control over rates, especially long term rates. Last time they lowered them all of them went up.
Stocks soaring. Will reach new all time highs.
Trump holds all the cards.
Panicans destroyed.
Stop embezzling US taxpayers money...
Burger King's a moron and doesn't get that he has to know what he's doing to fix things
Investors only flee into treasuries when the market shits its pants for reasons OTHER than the US President being retarded. No you can't intentionally tank your economy and simultaneously expect investors to have trust in (You).
high supply
low demand
magical accounting
nation-wrecking incompetence
overspending on lavish headquarters
4D chess sometimes seems contradictory to simple minds
WHY ARE BOND YIELDS STILL RISING
Nobody wants to buy the Debt.
Powell's term ends May 2026. By then, we'll already know which Trump puppet we're getting and probably how much quantitative easing will come with it. The yields will start accounting for that soon.
If the Fed lowers their rate treasury yields will go UP not down.
Think about it: if you lend the government $100 for 10 years and it will be worth $50 by the time you get it back wouldn't you want to get at least $200 back?
ded azz n1gg3r no cap fr fr
all jokes aside 10% inflation LFG!!!
control over rates
The Fed sets ('controls') the prime interest rate.
Not the rate of return yield for Treasury bonds (which is its own market)
The Fed does do something called 'yield curve control' meaning that they *buy up* unsold bonds to keep bond market rates, from spiking sharply upwards.
Damn Clinton was really something else. Say what you want but he knew how to fuck his secretary.
High interest rates are good. Same with smoking cigars indoors. It builds character. Man the fuck up and contribute to society instead of riding on lended money and being a living tax deduction.
Trojan idea
Smoking cigars inside is good
Man the fuck up
They cut my foreskin off
riding on lended money and being a living tax deduction
All money is lended and is manufactured by the state, everyone will find out
$37 trillion in debt and still rising that's why.
as far as I understand it wasnt Clinton it was Newt Gingrich
Congress makes the budget
and then Bush all squandered it with retarded wars and the 2008 financial crisis
I think that Bush was the worst president in american history
>nation-wrecking incompetence
clinton
I’m seeing evidence that the proceeds short end bonds that are maturing are getting put into the long end to hold it down. It’s still QT but it’s a sleight of hand under the hood. The experts are saying it’s not QE because it’s still net negative on the balance sheet. But the autists saying otherwise make a lot of sense and evidence
I’m of the strong opinion that the quality of your society is a reflection of the quality of your currency. This graph proves the point
If the Fed lowers their rate treasury yields will go UP not down
Not necessarily.
Many macroeconomic factors can cause bond yields to trend upwards.
Bonds are issued by the Treasury (not the Fed)
One of the most prevalent factors, over the past few years, causing upward trends in bond yields is the huge amount of debt
Lowering of the prime rate by a central bank (the Fed), causes money to become much more freely available throughout the economy, which will—frequently but not always—cause HNW entities and investors to put assets into risk, such as into the stock market. That would (likely) cause bond yields to overall trend down, making them relatively less attractive to debt security investors. Bond yields also have to stay ahead of inflation in order to make them "worthwhile" Low rates make it easier for the government to borrow money (for the Treasury Dept to issue more bonds) but it also means much more debt is out there on the market that needs to be bought. Has to be bought, it can't go unsold. When it does, bond rates start to uptrend or spike. Bond yields can not spike above too high a level or it begins to destabilize the debt securities market overall, and overall asset market confidence among HNW entities, banks etc. which are all connected back to and reliant upon the debt market one way or other. Whole system is built and founded entirely upon Debt, it is a Debt-Based Economic Model.
Bonds are supposed to be a secure and stable asset but over the past several years, the global bond markets have been more volatile and unstable than they have in many decades.
Hi anon
I mean you have to give credit where its due. If you blame a president for when the economy goes bad you also have to praise them when it goes well even if in both cases its mostly outside their control or it wasnt them the main actors of the change but by virtue of the position the responsibility lies on them.
hello anon
short end bonds that are maturing are getting put into the long end to hold it down
Correct, this is one of the main priorities/strategies of the incoming Treasury Secretary, whose predecessor had put trillions $$$ in new gov spending/"moneyprinting" onto the relatively shorter-term bonds, causing a massive waste and cost of higher interest for all of that new spending. Yes it is a form of 'shifting the table legs' because in the end, the overall quantity of Net Debt remains the same but is slightly less interest payment(s) on that debt. The new administration's plan is that by doing this for the first year or so, and also to get out from under the situation we've been put in by the prior Treasury Secretary's policy, some of the *fiscal* side i.e. gov spending issues can be addressed i.e. cut spending. Judging by the latest "big beautiful bill" being hashed out in Congress, however it seems that the basic problem of adding more than $1.5T per annum to the debt isn't being resolved anytime soon.
i was reading pic rel today
this says if US govt sells any gold it must be used for the SOLE purpose of paying down debt
i just thought that was interesting
Nothing personal kid.
Thanks for playing, good luck next time.
Correct, this is one of the main priorities/strategies of the incoming Treasury Secretary, whose predecessor had put trillions $$$ in new gov spending/"moneyprinting" onto the relatively shorter-term bonds, causing a massive waste and cost of higher interest for all of that new spending.
Yes I'd heard this mentioned recently (by some of the financebro channels)
Thanks. You made me realize that the long end sell off may be more about protesting the continued fiscal irresponsibility
but it really was Newt Gingrich
he even shut down the government over it
Republicans had demanded a budget that would lead to a balanced budget in 2002, but Clinton's budget projected annual deficits of around $190 billion up to 2005.
checked, it's this but also other factors. One of the biggest incoming crunches is that: At present the U.S. economic GDP growth is only around 2% per year. (Yeah we all know that GDP itself is a rigged number inherently, consists of way too much gov spending-programs, debt etc. but ignore that for the moment)
Problem with this is, at the current magnitude of $2T per year gov annual budget, we can't even pay interest on the debt. We need a GDP growth rate at least in the 5% (or more) annual range, to be able to even escape the interest tsunami that is inundating the U.S. gov budget and operations.
So this is part of the reason that not only is the incoming administration wanting to reduce annual deficit spending (and by consequence the net Debt), but also to bring more productive capacity capital back to the United States, so that the GDP itself does not primarily consist of only gov spending, projects, low-value service employment/industries and has much more of the U.S.-manufactured durable and consumer goods (instead of import all of those as we've come to be dependent upon for decades, now)
It's a total macro, and micro, transformation of the U.S. economy that is the only real way out of this dilemma
<<<---here, miran suggests ways around selling gold and having to use the proceeds to pay down debt
this is that part 4 of 4 paper
Hey einstein. Maybe you should overlay the chart of fed lending rates over this chart.
good post anon
How is this not obvious
pic related i also found today
citi just moved 180 funds into this, iirc
Gingrich
Yes in historical retrospect it was the Gingrich Congress "working with" the Dem presidency that brought the balanced budget of the 90s into reality. But after the repeal of Glass-Steagall in 1999 all bets were off and the final obstacle to full blown post-1970s Financialization of the global economy was permanently removed.
The world's investment banks officially became casinos after that point. 2 years later came 9/11 (endless war spending), and in 2007-2008 the collapse (after which 'capitalism' permanently died and went to heaven, forever)... now here we are $37T in debt with interest payments that exceed the annual U.S. military spending
US is over.
Corporate mass media never reports it or even mentions/alludes to the topic.
Doesn't exist in public awareness. Even for many highly trained and -placed finance, banking professionals (they are some of the most clueless)
I think capitalism is fine and well, just not in the US (largely due to the FED and the huge government)
Milei is showing everyone that capitalism works
How are you hedged, madam or sir?
I'm not the one to ask. Honestly
Asset-free?
Trump and his financial advisers have said from the beginning that the only way out “ is to grow out of it “.
Not a bad plan. After years of careful hedging, I am starting to suspect that it won’t matter much
Bitcoin is replacing the dollar
Banks are bankrupt, they bought long term bonds in a low rate environment thinking it's 0 risk. These bonds are down significantly due to the potential missed buying a bond today.
The Fed changes rules for them and offers different types of tools to deal with it but the dollar is cooked.
This is why "crypto" stableUSD is the new dollar and Bitcoin will eventually overtake that.
Trump and Trump's cabinet are deep into crypto banks, Trump has his own stableUSD USD1, everyone has to adopt a Bitcoin strategy or they'll continue to stagnate and die.
USD got cute with ESG-DEI and now they get bumped off by new technology that doesn't discriminate what type of energy you use or your race.
The Fed changes rules for them and offers different types of tools to deal with it but the Federal Reserve Note* is cooked.
ftfy
the dollar is a unit
You realize a several trillion flowed into precious metals the last few months? Yeah bitcoin can go a lot higher with smaller market cap, but there’s been a massive world wide vote for gold
That's due to differing expectations. The fed can absolutely affect the rate market.
it won’t matter much
Depends on where a person is in their life, how big a family they have, their income, existing assets, etc.
If you want to protect wealth, probably best to get into hard assets as much as possible. Precious metals (silver, gold), residential property (ownership), better if that land has ability to produce at least some agriculture, firearms, ammunition, access to water, private transportation vehicles, et cetera
The book and short documentary by David Rogers Webb 'The Great Taking' describes how there is a long term plan of the central banks and banking system to take control of all assets, when the final collapse of the Financialized Debt-Based Economic Model occurs.
Tokenization of assets, is one of the techniques that will be utilized. Because of that technique (which partly will be attempted to be implemented using the blockchain and crypto networks) it's advisable to have as much of one's own assets, in forms that are as "hands on" as possible. If you can't hold it in your own hand or see it with your own eyes, it's more risky
What happened to the fort Knox audit?
The definition of the dollar changes every few decades and we're in the midst of another one.
A.I. isn't going to ask JP Morgan for permissions
going to work out bb in 35
<<<<---archive.4plebs.org
The now-bankrupt Federal Reserve is building a $2.5 B complex in Washington DC and funding it with borrowed US taxpayer money. The Fed is fucking broke and putting Italian beehives in its extravagant rooftop gardens and building private elevators to VIP dining rooms, yet bloviating about the importance of citizens being able to communicate in a republic. lol
To add to the elitism and absurdity, Elon Musk, with his toothless, empty threats on his way out the door of DOGE, glibly stated, “someone should look into the Fed.”
Really? Is that it? What an absolute fucking joke.
It is fucking amazing that Trump’s economic advisor (Miran) wants to now indebt the US with 100 year bonds, so we can be skimmed for another fucking century by these insolvent frauds.
nypost.com
archive.is
his only goal was to take revenge for his father
replacing
See my post here Nothing is "replacing" the USD, because the entire global Financialized Debt-Based Economic Model relies on the single main default currency denomination, the USD (it was never intended to be that way but here we all are) which is a debt note fiat currency.
None of (You)r bitcoin dreams are coming true, the central banks will ensure that. (Central banks' version of the blockchain and cryptocurrencies is *absolutely the opposite* of what the original Btc vision was, it's about centralization of total control)
Watch the documentary 'The Great Taking'
Learn what tokenization is
that is what the central banks have planned for the future
en.m.wikipedia.org
The illusion of functional civilization is on its death bed. Even normies are starting to realize it's all an evil scam en masse. I give it another year before everyone just gives up.
Thanks anon we'll keep the fire lit
Or you need to raise taxes on the goyim
Yeah the Fed will kick the can and things will keep getting shittier because the dollar system is broken and when people utilize Bitcoin things will get better.
You should learn how to self host because as the layers are abstracted to more and more precise contracts it gets more complicated, and you want to know where you fall.
I'd rather use this technology have everything getting cheaper for me than try to homestead or some bullshit.
If I bought land and started farming at the start of covid I'd have like 1/10 my money and be barely surviving.
raise taxes
That by itself (just like DOGE 'corruption/waste') isn't going to be enough.
Revenue isn't the problem. It's--> *government spending* that is the problem and needs to be addressed. Magnitude of gov spending, is what causes all that stuff in my post (You) replied to
They need to _cut_ spending by the government, bigly
People like (for example) Steve Bannon have been loudly yelling since the DOGE began in January, for them to "cross the Potomac" and go over to The Pentagon. That's where a vast amount of Waste and Fraud can be uncovered. But as of yet that has not been done
So we will see. Even if they went through the Pentagon with DOGE, it wouldn't be enough—more than a couple hundred billion $$$—to make a significant dent in the $2T annual spending.
The actual spending itself, needs to be cut. Pentagon spending could be realistically cut by $500B if a combination of DOGE, there at the Pentagon, and guts of Congressmembers on Capitol Hill were properly applied.
This would make great progress for the new administration, OMB director, Treasury secretary and their stated goals of scaling down fedgov and its spending
he raided the social security coffers dry and posted a one-time surplus
if he got re-elected, he would have immediately been in the red again
I'm not criticizing blockchain or cryptos broadly. The original idea of Btc is a good one. Problem is, due to a combination of non-widespread adoption and deliberate restrictions by govs and banks globally, cryptocurrency never became a real daily Use-It-Down-@-7/11-To-Buy-Pack-Of-Cigarettes actual 'currency'. It's just another highly rarified forex-style speculative market (now flooded with thousands of different types and varieties of coins) at this point. Nobody (barely anyone) actually uses these coins for purchasing transactions, not across the global economies, only 1 or 2 tiny countries have "converted" to crypto in their banking and commerce systems.
And as mentioned, for crypto to become 'normie'-viable in a country like the U.S. for hundreds of millions of users, the banks won't allow that unless on their terms. (Plus there are actual major technical obstacles to making a real CBDC operational on a national/international scale, transaction interlock completion processing times for the blockchain etc. which I won't go into but Congressional hearings a couple years ago were held on this, and the U.S. gov along with the Fed each concluded it wasn't viable and wouldn't be for the foreseeable future without a super-major leap forward in computer processing and networking technologies of various kinds. A CBDC simply is not going to actually happen; but as mentioned they are going to try 'sideways' things to assert their control such as tokenization of assets)
not so hokee pokee now, motherfuckers
A country has the jews it deserves. Go to the fed bank in new york and shoot everyone inside
Yes. The Fed can easily keep long rates from going up. They're not doing it because it's their way of kvetching at Trump.
bought land and started farming
You never know, the way things are going (if you'd done that at the start of covid) and given the imminent global debt market collapse, you'd be far ahead of a lot of us.
The lowest hanging fruit is reforming the whole healthcare system. If compared to European countries, it should cost half as it costs now per GDP. Lower healthcare expenditure and raise taxes to collect those savings. Boom, you have an extra $ 2.5T
single main default currency denomination
Thats not the dollar anymore kike. You have to win wars for that
the wars ruined us, just can't be denied. I read some of the retard french king wars and it still did not sink in in how stupid Iraq and Afghanistan is, just like some retard king wanting to be a knight bankrupting his people.
If we can't pay the interest on the debt (we can always pay the interest on the debt lol), then why are we borrowing the currency we issue in the first place?
lowest hanging fruit is reforming the whole healthcare system
Bingo. This would be so easy and go so far in so many ways and yet America is way too dysfunctional it can't even do a national health system. America will double down on jew cum until it chokes to death. Reform isn't possible anymore
Corporate profits are going to have to suffer. The endless theft by the rich from the treasury and arbitrage has to end. I wouldn’t invest in yacht or private jet manufacturing right now.
By then, we'll already know which Trump puppet we're getting
They're gonna turn Volcker into an AI like they did with that dead nigger victim. Alphabet will have full control over rates.
Keep gloating.
It will be funnier this way.
checked, right and a lot of this 'Trump vs. The Fed (Chair)' stuff has been a larp.
First of all, remember that Trump advocated for lower, and even negative, rates during his first term 2018-2019. Trump really doesn't (either fully comprehend, or) care about the overall macroeconomic, monetary policy, global debt picture. He's just got a simplistic 'America first', "look at the stock market!!1!!!1!!!!111" view of finance and the economy. He also criticized Obama way back in early 2010s, before he ran for president, for keeping the prime rate so low: which it has essentially been since 2008 until the hikes of a couple years ago. Free money
Additionally, the Fed—properly, Federal Reserve Board and its Chair—are an independent entity and don't follow president's orders, another reason why all the publicity around 'what Trump says' is and always has been a larp.
Free money is good for Trump's stock market because (as posted ^^^above) it gives all the HNW entities, corporations etc. lots of easy-access cash to shove into their speculative debt instruments, corporations can do buybacks of their own stocks (one of the main ways the U.S. S&P has artificially boosted its valuations over the past few decades and a prime factor of Financialization): it means 'risk on'. Good Times at the Casino. That's what Trump likes to see, and a big part of what he considers "doing well" when it comes to the economy.
Of course he does care about other aspects of the economy too, I am not minimizing that. He and the incoming administration want to bring back real capital manufacturing, not just for the 'good jobs' but also to bolster the GDP itself, instead of the lackluster flaccid gov spending and service industries that American GDP has watered itself down with since the 1980s. Trump knows and sincerely believes this is also a path to prosperity; but this aspect will take some time, and its resultant output and benefit for Americans overall remains to be seen.
WHY ARE BOND YIELDS STILL RISING??? I WAS TOLD THE INFLATION HAS SUBSIDED!
Fiscal recklessness, more spending, tax cuts, Big beautiful spending bill, basically everything piles more onto the national debt. We need austerity, next best thing would've been a tariff induced recession and blame it on Biden. THEN you make trade deals just after Fed cuts and you effectively restart the business cycle.
Trump's admin caved on the only weapon he had on smashing yields down. Now Rising yields will result in a liquidity crisis and/or manufactured crisis or we go straight to debt monetization.
chart
neato anon.
man Covid was a real air bubble in our IV line
It was a crusade against lost pride. The official narrative is we were severely wounded by a guy on dialysis in a cave commanding a network of martyrdom-prepared sand warriors who learned to fly from resources in the country. They killed over two thousand people and neocons were left looking like the most incompetent administration since 1812. Then they doubled down and “accidentally” accomplished what Bush Sr set out to do.
will result in a liquidity crisis
Yes, but we already are in a global liquidity crisis. Have been for at least 2 years (probably 3) now.
Bank of England for example, couple years ago had to take a ton of bonds onto their balance sheet i.e. buy up unsold bonds, to prevent collapse of U.K. pensions.
The corporate mass media, financial news channels are barely if at all reporting on the extremely volatile and insecure condition of the global debt (bond) market. It's the lynchpin of the entire global Debt-Based Economic Model
When the debt market collapses : instant Mad Max
credit freeze
Fell for it again award.
We need austerity
Why are you people always completely and totally wrong?
The national "debt" is just a record of money the government has spent into the economy that it has not removed through taxation. The government MUST leave money behind in the economy through deficit spending. It HAS to do this or the private sector is the one getting drawn down on.
The national debt is not a problem unless you're a dumb fuck conservative who keeps trying to yank money out of the economy to pay it off.
This
MMT shill
Anon, (You)—of all people—need to study and learn from this film:
97% Owned — How is money created
youtube.com
(You) must first understand *what money is* and How it is created
watch and learn
30 year
Oh i wish i knew... For one are the pro frump that gloat with his decisions, even though are bad, call people panicans, le art of the deal, 4d chess, etc. on the opposite are the people that think he's an idiot that thought that it was America in the early 90's and could toss his weight like that.
The middle, that's a nice spot and maybe everything he touches goes to shit and has stomach hands. Maybe he's the guy who's gonna kill bit coin for good with his stupid decisions, making people to put money and rugpull... He has done it before.
Right now he looks so narcissistic that seems keen on getting a nobel at whatever price.
If only we had a comprehensive policy. Like reducing the size of government bigly. And, oh, then we won't feel pressure for immigrants because that will produce a supply of workers for the private sector. Or is everyone admitting that the government workers are useless at everything, can't even pick up a shovel?
spent into the economy
Lol, is that what you call paying $1 trillion on interest? You need to go back to the NYT reading your Keynes talking points
Hey faggot, I didn't write the rules.
Yields generally come down with fiscal discipline or recession. Fiscal discipline in our economy is effectively austerity.
Our only "Traditional" options are inducing a recession or limit spending which wont happen because both Parties are Big Government , Big Debt, Big Spenders.
We've always known these levels of spending are unsustainable, guess what, we're entering a phase where the world can't absorb all of this debt we're issuing.
No thanks. I've had enough conservative propaganda to last a lifetime.
Why would reducing the size of government be a good thing in and of itself? We already have an incredibly weak and impotent government that just does whatever capital wants.
Yea but now there's $1 trillion in interest payments that gotta be made annually, where is that money coming from? more debt
Bond prices depend on the interest the fed charges US banks that want to use the fed printer to buy bonds.
Trump said some very nasty things to the fed, and they are trying to explain to him that they own him
Paying interest is a policy choice. There is no natural or accounting law that requires it. Issuing bonds is a self-imposed legal restraint.
But that has nothing to do with the basic mechanics of sectoral balances. The money to generate a surplus in the private sector has to come from somewhere. And that somewhere is the government deficit (it could also come from a trade surplus, but we don't run a trade surplus).
The money comes from the same place it always comes from -- keystrokes. They mark up the account. They can always afford to pay. Whether they should be issuing bonds to begin with is another discussion.
'conservative'
Lol, anon the documentary is **VERY MUCH** made from a progressive point of view.
It was released in 2012 and includes Occupy Wall Street (Occupy City of London) activists
(You) need to comprehend and understand
1. what is Money
2. How is money created
(You) *need* to watch and study that film anon.
(You) in particular are its Target Audience
Stop posting. Watch it. Take notes (I'm still taking notes on that film having viewed it a dozen times)
based MMTer
comes from
Anon,
Money _*is*_ Debt.
see picrel (You) need to comprehend what Money is
then (You) need to comprehend How money is created
(yes banks create accounts, balances using keystrokes but that is far from the whole cycle or story)
(You) *need* to watch 97% Owned
(You) are its Target Audience
Stop posting, anon. Watch and study the film
MMT = flat earth money
checked
(You) also need to watch 97% Owned
I understand exactly how money is created - thank you very much.
The globohomo fed kept interest rates where they were to spite Trump.
MMT would completely remove any sort of accountability from an already corrupt system that is somewhat attempting to be kept in check with interest. Which is another issue.
MMT's only check is Government stats on what they think the inflation rate is, the can of worms that would open with the corrupticians in charge would be a disaster.
MMT would worsen wealth inequality, just like socialism. It works on paper, but in practice it's a disaster.
No shit money is debt, you dumb fuck. Stop trying to sound smart. It's basic double entry book keeping. Assets and liabilities.
What the fuck else would it be, you stupid motherfucker?
exactly how
Lol, your total ignorance itt proves the opposite.
(You) know Nothing about what Money is or how it is created.
Watch '97% Owned'
remove accountability
Who are you trying to fool with this dumb shit? It "removes accountability" if we stop pretending we need to pay interest to extremely wealthy individuals and institutions to pretend to borrow our own money?
checked,
define Debt.
what is it?
and before (You) hurl more insults: (You) are the biggest retard I've seen on Anon Babble in years. Total moron
Anon, "money" (<--your irrelevant incorrect 'concept' of it) is not "created" by 'the government'
Central banks are privately owned.
Watch and study the documentary '97% Owned'
it will save (You) from becoming a greater Idiot with each new post
just sayin'
Why would reducing the size of government be a good thing in and of itself?
It's chock full of make work positions. Those people could at least be maids or field workers.
It's basic double entry book keeping.
they just make up columns, they are not following any GAAP, they don't even mark to market
only you believe they aren't total frauds
the other anon is right
Who are you trying to fool with this dumb shit? It "removes accountability" if we stop pretending we need to pay interest to extremely wealthy individuals and institutions to pretend to borrow our own money?
It's human nature you fucking idiot. Give Today's Government a free money printer so long as "OFFICIAL GOV STATS" are good. Look at those decrepid old boomers who already give away contracts and subisidies, then make insider trades on it. Guess what they'll do with MMT?
Spend more to special interests and their friends while the BLS and media says that everything is great.
MMT is an idea, a tool, it's not a framework that fixes anything, in fact it worsens everything in the wrong hands.
And twenty other (You)s
I appreciate (You)
Debt is a liability. You need to understand why this dynamic is different for those who CREATE money. There will always be a debt because the sectors all have to balance. Not everywhere can always be in surplus.
The money is created out of nothing as a liability.
The world is already showing signs of a recession. Germany economy is totaly fucked for example, they havent had growth for a while. The only question is to know how bad its gonna be.
It's chock full of make work positions.
So what?
Those people could at least be maids of field workers.
Another right winger clamoring for a servant class under its thumb.
has to come from somewhere.
there is already enough currency out there now
we are not in the same situation as 1913 or 1933
dynamic is different
Lol, anon stop.
Stop now.
Debt is created by private banks (in multiple ways, depending on the specific type of bank).
(You) need to watch '97% Owned'. Right now.
The film is *tailor made* for (You) and the concerns (You) hold dear. Not kidding
The rest of your post = incoherent babble
Stop posting. Watch '97% Owned'
Yes, it's going into a recession because people aren't spending. They don't have enough money. They have too much debt -- which creates what is called a "balance sheet recession".
The solution is extremely simple -- literally give people money so they can monetize their debts and invest in infrastructure that improves production efficiencies and asset value of the nation state.
Money printer go brrrrr.
describes how there is a long term plan of the central banks and banking system to take control of all assets, when the final collapse of the Financialized Debt-Based Economic Model occurs.
Yeah that isn't a new plan
we stop pretending we need to pay interest to extremely wealthy individuals and institutions to pretend to borrow our own money
no one thinks this
no one here wants to borrow our own currency
you're welcome, anon
I agree with you there.
We are entering the debt monetization phase that will require multiple crises to justify that debt monetziation. Also this is a-political and terminal, this transition won't involve R vs. L, it's going to be people just losing their shit and rise in crime.
The Money Deluge
youtube.com
Excellent introduction to the post-1970s Financialization of our global economy. Gives a magnitude and scale to the problems that central banks have created, the Debt-Based Economic Model
(watch '97% Owned', posted upthread^^^^, for a deeper dive into how exactly money is created and currency policy of sovereign central banks is formulated)
Give Today's Government a free money printer so long as "OFFICIAL GOV STATS" are good.
pic rel
OH BOY I LOVE TO PAY INTEREST TO INTERNATIONAL FINANCE TO MINT OUR OWN MONEY WHICH IS EXPLICITLY PROHIBITED IN THE CONSTITUTION
Yes I know what you mean (by the quote post)
but 'The Great Taking' goes into legal and financial specifics, point-by-point, of what the banks and governments have in place concerning legislation and regulations at the present time.
An example would be what Canada has been doing over the past few years with their consumer banking regulations; but these types of financial asset controls extend far beyond mere bank checking accounts into other assets like mortgages, properties
It's a fascistic merger of financial industry (banks) and government policies and contractual agreements, definitions of assets
The book and short documentary are highly specific, it's like a road map
Its supply and demand. The global stock market increased by 3.5% moving money out of bonds to stocks which increases yields
The bankers know that this system is failing, they will use a series of crises to initiate a controlled demolition, make them look like the good guys. Just look at how COVID played out and the world took it in the ass. Unfortunately I see no public will yet to expel the bankers, and sadly, 90% of the population doesn't even understand how the entire fiat debt system is just a wealth extraction tool that has predictive outcomes like ones we're seeing right now.
Shut up, Nigger
debt monetization
Except that can't occur.
Each note of debt note fiat currency, created by any central bank, also has a corresponding bond (debt note) issued by the sovereign treasury that must be bought. On the debt market
This is the fundamental flaw and rubicon that has now been reached by the U.S. government (discussed upthread)
Interest on the debt, now exceeds annual military spending. And will swamp entitlement spending within a decade. The rate of GDP growth is too anemic, for the debt itself to be financed any more.
Tandem infinite forever-expansion of fiscal(gov spending) and monetary(Treasury+central bank "moneyprinting") policies, can not continue any longer. Physical wall has been reached.
Additionally, no one wants to buy the debt (also already discussed upthread)
you're on fire tonight, anon
why not just quit giving free shit to old people and niggers?
OH BOY I LOVE TO PAY INTEREST TO INTERNATIONAL FINANCE TO MINT OUR OWN MONEY WHICH IS EXPLICITLY PROHIBITED IN THE CONSTITUTION
this
The fed can absolutely affect the rate market.
They can but only if conditions are right. If they tried some QE horseshit right now they'd light inflation right up. And they can affect it, but not control it. Bottom line is America's exorbitant privilege is ending, rates are starting a multi decade secular uptrend. Between no cheap money and AI the average grossly overpaid and under skilled amerifat office drone is in for a very rude awakening
You would still have a debt even if you weren't paying interest -- because you need to deficit spend to leave money behind in the economy so the private sector can generate a surplus (unless of course you run a large enough trade surplus, which we don't -- the point is that the sectors must be in balance).
>debt monetization
Except that can't occur.
It'll eventually just end up on the Federal Reserves imaginary balance sheet.
Between no cheap money and AI the average grossly overpaid and under skilled amerifat office drone is in for a very rude awakening
this really cuts to the chase
I'm trying to understand Richard Werner's argument about high interest rates reflecting a booming economy, but I can't get my head around it.
interest rates follow economic growth, which is the empirically established fact: sciencedirect.com
you don't account for commercial small bank lending
A lot of it already is
on a daily/houly basis
No one needs to buy the debt. Issuing bonds -- selling debt -- is a SELF IMPOSED LEGAL RESTRAINT. There is no accounting or natural law that requires this process to occur.
You can just directly finance government spending. If you still want to sell bonds you can allow the central bank to purchase bonds on the primary market -- which would obviously mean they could/would buy them at near-zero yield where no one else would.
We are nowhere close to tapped out. The nominal debt is what, $37T? What is the asset value of the United States as a whole -- government, corporate, population? Comfortably over $100T.
Universal basic income + massive infrastructure investment + stop issuing bonds. Problem solved.
Anon,
Stop Posting.
Why would I in what I am talking about? The private sector taking on private debt is their liability and the bank's asset.
Great thread yesterday, thanks
you try to pretend that government is the only one to create money and it isn't
and there is now so much money out there, private lending is also now a player
you limit solutions and confuse posters with your imaginary constraints
thx for contributing
SELF IMPOSED LEGAL RESTRAINT
kek
yeah it looks it
No, private banks create deposits. I am not disputing that at all -- in fact, private banks creating money is pretty much ALWAYS what actually drives inflation, not government spending. Which is why it is important for the government to get money in people's hands so they can monetize their existing private debts -- approx. $18T in the US right now.
The nominal debt is what, $37T?
kek
now you're going to pretend that intragovernmental debt doesn't exist?
Picrel
left side is interest paid on ~$152 Trillion in Intragovernmental debt (aka GAS treasuries bought with our payroll taxes that we are charged interest on, the interest rate is the going rate of the 2 yr floating rate note, iirc)
right side is interest paid on ~$36 Trillion of Public Issues (aka marketable debt, which is borrowed Federal Reserve Notes for deficit spending)
you try to pretend that government is the only one to create money
it isn't
He has absolutely Zero comprehension or understanding of what money even is, let alone how it is created
like watching a toddler, that can't even form words, speak the Gettysburg Address
If nothing else, his ignorant postings are a stark demonstration of just how little *any* of us/normies know when asked the simple question: "where does money come from"
For what it's worth (^he should be watching '97% Owned' for his education, but...) here is professor Werner explaining how the banking system and financial sector actually work
youtube.com
what actually drives inflation,
pic related
pushing UBI is a red fleg for me
I'm not saying anything different than Werner. Werner's whole book was about credit channeling.
Isn't intragovernmental debt a flawed metric where you have on paper trillions of debt obligations, but if you look at it on a net basis, the debt is just a fraction of the listed amount?
The other Anon is right that the US could go full MMT mode in theory, but the shock it would cause, would wreck the markets into an irreparable state for decades.
saying anything different
(You) do not understand 'Werner'
(acting as though (You) are somehow "familiar" with him by surname and his "whole book")
(You) are totally ignorant of the subjects (You) post about itt, (You)r posts are word salad.
Are (You) in high school?
None of what (You) posted is money. Or even debt
Please learn something prior to posting in these topics
Why? It expands the money supply to support growing the economy by getting it directly in the hands of people instead of filtering it through a layer of bank credit by hoping banks feel like lending when interest rates are low.
You have $18T in private debts, ~$6T gap between nominal GDP and disposable income, so there's a massive deflationary cushion built in along with plenty of demand-side headroom. You lower future demand for consumer credit, cooling off the multiplier effect of credit card interest. Cool off any residual excess liquidity with a new consumption tax. It's a closed loop.
shock it would cause
could go full MMT mode in theory
lol
picrel
intragovernemntal debt is a RUNNING TALLY of what is owweed out based oin whathas beeen paid in
aka a Ponzi scheme
i literally has a boomer say to me about soc sec the other day:
oh, just let it last another 20 years
this is their mentality, STILL only worried for themselves
Werner's book was about the ministry of finance in Japan utilizing credit guidance windows to channel money credit creation into Japanese infrastructure and manufacturing processes, as opposed to speculative asset bubbles like real estate. He blamed the BoJ winning a power struggle and creating an asset bubble on Japan's economic bubble bursting.
We've already been in a credit freeze and it resulted in zero interest rates and mass money printing. What's the stopping them from deploying the same solutions? People are only wringing their hands because prime rate is not at lower bound. Once ecomony implodes, the government will just print a cool $5t and then the agenda to serfdom will be all but undeniable
'growing the economy'
Government spending is not "growing the economy"
Government spending is (as ever) growing the Debt. (And it most certainly does not 'grow' GDP except *as* debt)
All governments globally in 2025, utilized debt note fiat currency from private central banks.
That debt is owed, on the backs of sovereign citizens aka the Debtors, to private banks.
Unearned income has become the primary method by which the global economy's top HNW entities, using debt instruments and debt note fiat currencies (issued through central banks), are creating wealth and incresing GDP—which is less and less comprised of actualy goods/services while more and more comprised of Financialized debt and speculative instruments. Global debt topped $255 trillion in 2019 and $307 trillion in 2023, more than three times the amount of all global economic output. Total debt levels and deficit spending of the past 30 years has eclipsed that of the past few centuries of Western civilization, and absurdly low and negative interest rate borrowing costs have incentivized national governments to no longer borrow in the expectation that they will repay, but on the expectation that they will refinance.
all UBI does is lull the lower classes with hush money as the country is robbed blind via the Fed
by hoping banks feel like lending when interest rates are low.
can always stop IORB and make banks lend
You literally don't need to pay the debt back. Why don't you get this? The debt has to exist because there is an origin point from which money is created out of nothing.
and absurdly low and negative interest rate borrowing costs have incentivized national governments to no longer borrow in the expectation that they will repay, but on the expectation that they will refinance.
this
You literally don't need to pay the debt back.
oh boy here we go
then why issue our currency collateralized with debt that we don't pay back?
sure fucking looks like we are paying it back as intereest on the debt is our greatest expense
That's only half the story.
BoJ owns virtually all of the Japanese government's issued bonds.
The Bank of Japan is a privately held entity. It owns more than half the debt assets of that nation
(You) may ? have "read" Werner's work but only "comprehended" the parts that had to do with gov policies i.e. skimmed it for confirmation bias. How the money itself was created, bonds issued totally eluded (You)
"blamed" the Bank of Japan
Lol.
Watch the 15-minute clip of him I posted upthread
But before (You) do that:
watch and study the documentary '97% Owned'
(You) have absolutely no idea what you are even posting about. None
then why issue our currency collateralized with debt that we don't pay back?
Because there's a legal requirement that the treasury issue bonds to "cover" deficit spending. Maybe issuing bonds is good policy because pension funds like them, but it is a policy choice.
Yeah idk what you're smoking because there's no 150T intergovernmental debt to begin with.
BoJ owns virtually all of the Japanese government's issued bonds.
They own around 50%.
interest on the debt is our greatest expense
checked,
Anon he doesn't even understand or comprehend what he's posting about.
Moreover, (in regard to the United States / its gov spending / the USD) this is a completely unique and unprecedented condition in world history.
Never before have we had the entire global economy dependent wholly on a single nation's debt note fiat currency, issued by the nation that also happens to have the world's largest single economy by GDP
150T
?
(You) replied to a different post
Japan runs larger budget deficits and carries a higher debt-to-GDP ratio than the United States. I don't know where you get this unprecedented angle.
Bond yields rising is good. Fuck inflation, fuck loans and fuck credit card swiping consoomer idiots.
It's all owned by private banks (Bank of Japan included in that) and investors.
Because the yen is not the world's default reserve currency.
Retard
Because there's a legal requirement that the treasury issue bonds to "cover" deficit spending.
no shit sherlock
you're the one who said we don't have to pay that debt
Moreover, (in regard to the United States / its gov spending / the USD) this is a completely unique and unprecedented condition in world history.
Never before have we had the entire global economy dependent wholly on a single nation's debt note fiat currency, issued by the nation that also happens to have the world's largest single economy by GDP
all agreed
We aren't paying it lol. Impotent conservatives keep trying to make us, though.
there's no 150T intergovernmental debt to begin with.
kek, there sure is and is is INTRAgovernmental not inter-
<<<<—The red arrow is the running tally just for the US Intragovernmental Debt. These ‘unfunded liabilities’ include Medicare (~70% of picrel) and Social Security (~25%) and Disability (~5%).
$152 TRILLION (US taxpayers paid $237 Billion in interest on this Intragovernmental Debt in FY 2024 ALONE). This is the amount that is owed out, as of today, based on what was taken in, in (mostly) payroll taxes.
THIS DOES NOT INCLUDE the ~$36 TRILLION in Marketable Debt (aka Public Issues) that the public is always bitching about (US taxpayers paid $896 B in interest on this in FY 2024 ALONE).
So, the running tally for US currency borrowed from the NOW-INSOLVENT private Federal Reserve's debt franchise is ~$187 Trillion.
$187 fucking TRILLION.
paying it
In order to do so the interest would have to be paid first
so your plan is both debt denial and debt default, sounds liberal
Wow I am reminded itt (even more from just casual browsing around Anon Babble's Catalog)
of just how much ignorance exists.
amazing
According to this chart. Democrats spend way less and the defiecet always goes down?? Am I reading that right?
im wondering how i missed this pattern the last 20 years ive been voting
Cant the USA just let inflation do its job and devalue the USD?
Sure, the goyim will suffer but in the end the denbts will be paid.
print 1000 brazilion usd
Done, denbts paid
noooo my bonds and stockerinos will suffer, think of the loss of "confidence"
Not a real problem, start using chink money or gold if you care so much
politics is completely fake
you are a literal retard buying into jewish theater
they always have the man they want exactly in the position they want
'print'
Checked,
there's your first problem anon.
Read the thread. Money doesn't come "out of thin air".
Debt note fiat currency, each unit of it 'created' also creates a Treasury bond. That is sold on the market as Debt.
Somebody has to buy the debt
Right now, nobody is/wants to
And the associated problem, discussed above, if we're talking about the U.S. system/economy here and its sovereign currency well, that denomination also happens to be the world's default reserve currency. Prettiest belle at the ball of debt note fiat currencies; the most preferred, desired for all transactions including sovereign debt payments, HNW contracts, corporate transfers, cash etc. Everyone wants and needs dollars
in the position they want
Butler, Pennsylvania 13th July 2024
Is that what was supposed to happen?
(in a microsecond, they would have swapped Nikki Haley in there)
Here's the ratespill.
Borrower perspective
Interest Rates are the price of present money in exchange for future money. Booming economy = increased demand for money in the present relative to the future.
Lender perspective
Lending at a fixed rate caps opportunity for reward. Growing economy = higher opportunity cost for limiting my upside to x% interest yield, therefore as a lender I'd want more interest to make it worth it.
Conversely this is why low interest rates precipitate bad economies, because worse demand for money in the present relative to the future and no better opportunities for investment for capital allocators.
Central bankers want you to believe the opposite is true, that low rates stimulate and high rates constrict, which is a fallacious belief that preeminates their central-planning position in the economy by obfuscating price-signals and claiming their work operates on unmeasurable "long and variable lags".
I warned you about hyperinflation bro
You can direct issue it doesn't matter you end up in the same place either way - people can't afford anything because they have no real purchasing power. You're an idiot, btw
got to crash
see you anons next time
good thread anon
you retard
when banks originate loans they literally create the money then and there
cgi
Thanks as always, glad we made it
I can see it better now! Thanks.
I'm thinking that money is always in demand, people always need it, and have ideas on how to put it to use, but I can understand that sometimes it can be a craze or that principles of frugality and other worldviews can collapse in specific periods or economic environments.
Money doesn't come "out of thin air
Lol, lmao even
Somebody has to buy the debt
Right now, nobody is/wants to
Just get some fake jewish bank to buy it all and get rates down if its so important.
Truth is, they want high inflation and high interest so the goyim work extra hard in the coming years
'banks originate loans'
Regional banks? Yes the 9:1 ratio
to lend a mortgage or auto loan
Not what / the process we're discussing here.
My post (You) replied to is about *central banks*
(in that case of USD, the Federal Reserve and U.S. Treasury Dept, which issues a *bond* for each unit of USD "printed" into existence)
Watch the film '97% Owned' posted upthread^^^^ for a tutorial on How money is created
liquidity shortage retard
Based af and QFT. I miss Paul VOLKner like you wouldn't believe. We needed him so bad these past couple years. Fuck Jerome Powell and fuck all his mentally ill, gambling addicted, credit card swiping supporters.
bank to buy it all
Bank of Japan did So did Bank of England (to save U.K. pensions recently) Unsold bond auctions mostly end up on a central bank's balance sheet
That's an additional way (besides limitless gov spending) a sovereign country becomes indebted to private investment banks (<--that are Primary Dealers for all central banks)
Low inflation, high bond yields? Sounds like a good time to buy bonds. It's an easy 5%
sovereign country becomes indebted to private investment banks
There you go. Its just zog being zog.
Trump is directly responsible for the outcome of his tariff policy. Those tariffs are his and his alone. If they rattle the stock market and bond market then it is his fault.
That's what the banking system (and debt note fiat currency) is. Debt slavery
The "rattle" of the past month is over with. We're giga pumping now, and without money printing, high inflation or lowering interest rates either. That's a pretty big W if you ask me and because the Federal Reserve did nothing to contribute to the pump, there's literally no one else to praise except Trump.