Summer 2020 was the beginning of the end we can't stop it
US 10 Year Treasury yields haven't been this high since 2007
Zoom out! Zooom out! Zoomie out! Zoomie ooout! I said zoooom! Zoom out! Ehehehehe hahahahaha zoom out zoom out zoom out!!!! AAAAAAAAA FUCKING ZOOM OUT!!!
Explain why it going up a little is bad when in the 90s and 2000s it was already super high (I'm retard)
US had a lower debt load then. We’re having to pay a ton on the interest of our old debt and now new debt will be expensive
check the debt to gdp now compared to back then.
interest rates are irrelevant when debt is low but super relevant when your indebted to your neck
this :D just keep zooming out until you feel better
Can anyone explain this bond thing to a retard anon? What is it? Why is it bad that its going up?
Check the 20 and 30 years
if bond rates go up it means nobody is buying US debt
and that ain't a so good seeing as how we're like 30 trillion in debt right now
You owe the bank $100, that's your problem. When you owe the bank $10,000,000,000,000 that's their problem. Only retards should care about this.
It's the interest rate you have to pay for buyers to accept new debt
Yield is the interest rate on the bond, if it's rises the market value of the bond drops.
it's even worse
Ohh. You are making me understand it. People are buying this as a safe investment option. People give US money and US pays back. If it goes up US has to pay back more.
So this 4.425% what US pays in 10 years right? Very fucking low but good for big capital?
And those bonds worth more, they are the elephants in the room. Thats why Trump cucked, Chink started to sell long end bonds
We’re absolutely going to double digits, and very quickly if Trump manages to remove Powell.
You guys remember all those old Mazda commercials?
zoom zoom
Kino
4.425% every year in 4 parts, it's like a loan to the US. Not an investment (investment for the investor).
And the US paid a bunch of these for Chink, Japanese and European goods and materials etc. for decades
High yield is not that important if you have low debt.
After 2008 the world governments decided that debt is irrelevant and the goyim can deal with it, so the money printer can print 24/7 to finance artistic gay dance for teens in Gabon.
The result is that, everything trice more expensive and half the federal budget is to pay interest to bankers.
Now take a guess who benefit most of this system. The populace or...
youtube.com
Ironically zoomers will never know how much better pre 9/11 ads were
the idea is that if stocks are looking shitty you will accept the bond interest rate instead. 4.425% in 10 years is better than losing your money in that time
so a real nightmare scenario is if the stocks are dumping at the same time bond yields are rising... that means investors aren't investing in US stocks OR bonds.
Yeah but if people start selling off bonds because they're nervous the Treasury will have to offer a higher rate
Banks use Treasuries to set their lending rates for everything else because government bonds are considered the safest investment
So if the rate on Treasuries goes up, rates on mortgages and everything else have go go up alongside them to be competitive because they're higher risk
And the economy will shit
USD is also dropping so it's even worse. Gold and European currencies rise. Even the milkshake isnt working.
I mean, what's going to be the state of the US empire in 20 years, 30 years?
I want to buy a house this year. Was waiting for mortgage rates to come down.
So am I just fucked then?
Yup, the implication is the the US govt is no longer reliable and there is a risk that it will default on it's loans. To get a picture of just how insane this is, I was taught in college that t-bill yields were considered the "risk free rate". It's the basis of the entire financial system.
I've tried explaining this to this board but they insist that defaulting on US treasury bonds and making a "clean slate" is the only way forward for the US, and what's more they think the stock market will actually increase as a result because "no debt".
This board is fucking retarded and Anon Babble is too.
Powell might get fired yet but it'll go Zimbabwe if rates are cut because of that
Babylon will fall eventually. Don's torching of the economic and political foundations of American power to appease scammers, grifters, and radical jewish groups and enrich his psychotic NRX advisors will eventually result in total american collapse or destruction at the hands of an ascendant foreign coalition.
Thanks anons. I understand it now. It's definetly the chinks that are selling it. They were the number 1 hoarders of these bonds all along.
Its a full blown economical warfare at this point. I think the golden bear is upon us.
So, are the only options to default and have the USD become Zimbabwe-tier or turn on the moneyprinter but get fucked by hyperinflation?
LG
Life's Good!
:D
How far have we strayed from God.
It's funny how obvious it is, but none of the media is pointing it out. Two nights ago the US and Chinese were firesaling each others bonds in a game to see who quits first. Its a literal financial war, and the media refuses to talk about it
Is it true that Japan sold more bonds than China yesterday? I read that Japan was the one selling and China hasn't even started yet. No idea if it's true or not.
but it'll go Zimbabwe if rates are cut because of that
Do we also have a total collapse of our agricultural output on the horizon? Because that's what actually happened in Zimbabwe.
Japan has a shitton as well. If the chinks manage to convince Japan to join in on it, it's not gonna be pretty.
They told MIGAtards it was the Japanese. It's really despicable, they want Americans to hate their allies and even random people
Owe the bank $100
Wage is $1 an hour
Hyperinflation
Suddenly earn $1000 an hour
Still owe the bank $100
Not my problem.
forget the rate
you should be waiting for prices to dump
and they will
Since the 90s the economy has been completely rewired to work on the basis of perpetually increasing asset values. Whenever the music stops (as in 2008) all hell breaks loose. So the only policy they know is poomping.
china and japan team up one last time to defeat evil US beast
he thinks he's getting a raise
I assumed china because I knew they owned a bunch, I know japan owns even more US debt than China but they usually tell us before selling like that, they were asked to coordinate a bank stock sale with other countries to kill the US market back in 2009 and they declined.
The International Bankers have fucked us so long and hard our financial anus has finally prolapsed. Now, they will create a new anus to penetrate. It will be a blockchain digital anus and they will be able to fuck us even longer and deeper than ever before.
If it was a sovereign we would have seen gold go up.
gold is pushing 3200 lol
My kid is 5 and we live in a house that's inappropriately small still. Like he doesn't have his own bedroom and we live in the US. I'm getting pretty fucking desperate to just buy one... been holding out for years honestly and we can afford it. I don't know.
Oh fugg :DDDD
So what exactly are little people like us supposed to do?
Is this just a forest fire and all the little furry woodland creatures are fucked except for the (((birds)))?
+3.13%
It performed better than my shitcoins.
I'll just take your lunch out of the work fridge since I can't afford bread. What little Richard Dixon gon do? Give me cake?
imo it's like
Fed cuts rates to save the market but you get inflation (domestically)
Fed raises rates to save USD but crashes the market and you get a depression
Fed turns on the money printer to buy US Treasuries to suppress rates but devalues the dollar (in international exchange)
Actually, the largest nation that holds the most bonds is Japan.
No. The USA can repatriate all its gold and silver plus beg borrow and steal as much as it can get and then re-price the gold to 10 or 100x and re-peg it to the currency thereby soaking up all the debt and re-stabilizing the currency.
However, it should be noted that most bondholders are US nationals.
It's not looking good for farmers right now since a good number were planting cash crops for export to China like basedbeans, if they go bankrupt we'll see fucking BlackRock picking up even more farmland and becoming a cartel
Well not doomsday bad but its bearish definetly. As long as cheetos nigga is in the office people will not invest in US.
It would look the same if there's a gold rush into private investments due to some opportunity like a new sector with limited but considerable growth opening up. You only go public if you want to invest other people's money, if you have a real opportunity you want it for yourself.
If the US defaulted it would be the gigadepression. If they wipe it away with inflation the shit and piss 500 would 100x while the currency becomes worth 1/1000 of what it's worth now.
Buy gold and silver
Has anyone other than orange man even tried to propose any hint to a solution to this shit? Do the people who keep yapping about taxing billionaires actually think that helps?
It would be like the fall of the soviet union. Maybe the US is better off as a bunch of disparate independent states.
Soooo as someone with a lot of cash what should I be looking at buying? Gold? Euros?
Bitcoin holds most its value or goes up in all scenarios.
Ammunition, canned food, water, and a potato garden in your bathroom lmao
god I wish that would happen.
:^)
Why didn't Trump's advisors warn him that rising bond yields would be a very expected and a logical outcome of such an agressive economic politics towards one of the largest foreign bond holders?
I mean, I'm aware that we don't now at least 90% of stuff happening behind closed doors but it all seems so random at such a high level:
According to sources cited by the Wall Street Journal, the president was watching Fox Business in real-time and asked aides to reconsider the full scope of the planned tariff hikes shortly afterward.
Early Wednesday, JPMorgan CEO Jamie Dimon cautioned on Fox Business that a tariff-induced recession was becoming increasingly "likely," adding that the negative market reaction "could get worse if we don't make some progress" on negotiations.
Trump took notice. He directly referenced Dimon's interview later that day, calling him “very smart and very genius financially.”
How would this model ever be sustainable? Surely at a certain point interest payments cost more than total GDP. We just print more money or something?
Back then USA didn't have a giga debt with a giga interest to pay annually.
Because interest rates were going down for 50 years so the US could always final old debt with new debt borrowed at lower interest rates, but history is making a comeback
Nobody ever took any responsibility until the orange god emperor did, they take credit for short term gains and push the problem back.
How would endless mass immigration ever be sustainable? How would anything that relies on endless population growth like social security ever be sustainable?
why does social security rely on endless population growth?
That's exactly how it works. As long as your deficit doesn't grow uncontrollably, you inflate it away over time.
How would anything that relies on endless population growth like social security ever be sustainable?
Social Security's funding mechanism was a political choice. It takes zero legislative effort to alter it.
at some point you have to accept that the people in charge are retarded and corrupt instead of just corrupt
Because they're grossly incompetent? The only one that has a clue is that faggot Bessent, who finally talked some sense into Trump. Bessent knows how fucked this situation is though, and is looking to leave.
Based Luxembourg, upholding the economy of a country with 500 times the population
It's sustainable because the government issues money. Money is not a finite resource. Now a better question is whether the process of paying interest on debt is something we should do -- and considering interest makes up the majority of the so-called deficit, it seems like the answer is no. But there are legal reasons why they can't do that, not accounting reasons, but legal ones.
Social security is most stable when the population is growing, as you have a consistently larger number of working adults to pay for the smaller generation of beneficiaries, but the system should also be relatively stable with a stagnant population. It's a declining population that breaks it.
He had tardwrangles last time
He now has dicksuckers
This is also the gop fault for not stoping this man like last time.
Who knew it was so hard to not spend money and operate an efficient government so that the economy could grow enough to reduce the real value of your debts
I always thought that the advisors on such a high level are true TOP GUNs of their areas of expertise.
Like creme de la creme.
he got rid of anyoe who would stand up to him der
Bond market is open, US10Y now at 4.46%
cnbc.com
maybe it's a bad idea to piss off every other country at the same time idk
this is a good thing
now we westerners can buy bonds and make good $
most of these countries are too pussy to sell our bonds because they don’t want BRICS happening. it means they would actually have to take Russia and China seriously
There isn't a single half-way respectable man that can survive a trump admin. I didn't agree with a lot of his first cabinet, but at least I could say that they were competent. There's a reason why none of them are around this time.
I voted for Trump and I'm loading up on SQQQ.
High retard, I'm super high.
maybe don't push it too far, like idk taking Groenland and make EU definitely mad enough to hurt their former ally
Not a single european lives in greenland
They pay no taxes, they generate no profit or resources
Why do they want to nuke the relationship over it?
Even without a special program to help you retire no matter how many tokens you "saved" when you were young you need productive young people to take care of you as an unproductive senior. The money you saved increased purchasing power for everyone else when you were young at the cost of reducing the purchasing power for everyone else when you're old, pushing back the problem. The bigger the ratio of retirees the less purchasing power for non retirees. With significant population growth this is not a big issue, with declining population it's a catastrophe turning the young into slaves for oldfags.
My TLT 86.5p are looking mighty fine
good, go broke
no the 10y yield was higher at points in 2023, 2024. but not by much. just .1 or .2% higher than where it is right now
cnbc.com
remember, a .1% movement in the 10y rate is HUGE because it's the rate that literally everything else in the global system is based on, all the derivatives, everything.
i have been saying for years, if we see this start to blow out towards 5-6-7-8% it will be the precursor to economic collapse. or more accurately war or a cyberattack. because they won't let that happen
userID says FAP
babylon is falling, i am full erect
true
They used to be, then trump got rid of them in favor of loyalists and scapegoats
holy fuck, it's up 5 basis points in a half hour. this is crazy. if it keeps on like this, we're going to have a huge meltdown tomorrow morning, like multiple circuit breakers bad
or JPow will step in and announce outright yield curve control by the Fed buying bonds on the open market like bank of japan
i wonder who's selling?
So basically just "yes men"?
tranny subhuman too stupid to realize SQQQ is short on the market
Sounds like we have to cut all tranny spending then.
Can someone explain what happens when the yields get higher? Would it raise inflation so the US can pay off it's higher interest debt?
Far from an expert, but the treasury bond being the industry standard it would mean that the price of borrowing money would get much higher, so it would be the opposite of an inflation.
Wouldn't it be more beneficial to be the first to get out before others do?
Do it.
i know that, im expecting a pump to liquidate shorts, as usual
Should I get in? If I'm being paid more in yield on a virtually risk free investment, doesn't that provide some benefit?
Sorry, but I'm really not able to weigh in to such matters. Maybe someone more savy will reply.
Check it now m8
Most polite and humble Anon Babble user
If you like 4.5% a year. If you think foreigners will keep dumping and rates won't get cut you can wait for a higher yield. You get paid unless the US defaults which seems very unlikely.
Ssoiboi cuck.
Its the nips actually
In times of crisis, the Samurai is taught to make a descision within the space of seven breaths, so they always move first when shit gets real
They're cutting taxes by 5T, while not reducing spending at all. Bond yields should be blowing out. Debt ceiling will be hit again in under 2 years, watch. They'll pull out all stops cause everyone realizes that none of the numbers are real.
every country is financed out the gills to pay for the old and sick, international aid is 1% of the budget
It's virtually risk free so long as the US continues paying its debts. I would recommend checking with local banks for checking/savings account rates as well as they may have a better return on investment with similar safety (though FDIC) and liquidity
Should I get in? If I'm being paid more in yield on a virtually risk free investment, doesn't that provide some benefit?
Depends on how much of a loser you are. If your income is high then fuck no. If you make good money and consider adding the Treasury bills on top of what you get paid, then on the interest yearly even no matter what time frame your note is then 1/3 of that 4.5% gets sent right back to the tax man, so you're really only looking at 3% returns. It's "risk free" because you're barely beating inflation and basically just spinning in place.
Bond market finally waking up after a 40 year slumber.
us zoomers are gonna shit ourselves in a couple decades when we will have to cancel out social security we which financed ourselves and rolling back all legislation that was put in place to make boomers' assets go to the moon.
no refunds i guess
When does our hero Jay Powell do something about this?
Supreme Court grants Trump temporary power to fire top agency officials, Possibly allowing for power to fire Jerome Powell
bloomberg.com
He has under 2 weeks. 1 week, perhaps.
Oh yea? I heard it’s actually the EU and that’s why no news outlets are talking about it
Good news anon. I’ll keep slurping
Trust the science, it's risk free.
the jew fears the samurai
Can you not afford a 2 BR? Which state are you in?
And paying people "just because", even if they didnt contribute.