Posted 9/11/2021 11:17 (#9214505 - in reply to #9214472) Subject: Might as well BURN your money if it's in bonds
"Probably starting to dump their US bonds."
THEY'D BE CRAZY NOT TOO...
CPI Inflation (June): 5.4% YoY
10 year T-bond: 1.3%
which means you’re losing 4% on every $$ in treasuries.
That’s on TRILLIONS.
It’s a massive market.
People are soon gonna find out the risk-free rate is not necessarily risk free. Quite the opposite in fact. The RISK FREE rate underpins how EVERYTHING in our financial system is valued.
No one knows what to expect because the FED has NEVER been unable to raise rates to fight inflation before. But after printing TRILLIONS and US govt debt being at $29 Trillion, the FED has boxed itself in. Printing anymore money to ‘fix’ things will just make inflation worse. That ships sailed. It’s like trying to un-pop a balloon. You’d prolly have better luck at that sadly....
This is gonna get REALLY bad
(I feel like I’m starting to wear that line out)