dollar national debt interest

Anonymous
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:The dollar has dropped YTD, but so has the yield on the 10 year Treasury. There are too many other variables to make a correlation.

Regardless of the dollar, given all the deficit spending past/present/future, rates should rise, but they are dropping across the entire yield curve, 10 year recent peak was 10/23 at 5%.



Correlation means exactly that: correlation.

Yes, there's fairly strong correlation. But worse, the way to mitigate some of the effects at a macro level have significant impacts on the working and middle classes. e.g., a weak dollar can drive inflation, leading to higher interest rates, ultimately making food, housing, and other basic needs more expensive in order to protect rich people.
Agree with your theory, but the data YTD does not. Yields have been dropping.


Look wider than 1-5 years.
Wider is affected by QE, so that a major skew.
Anonymous
Anonymous wrote:
Anonymous wrote:We live in a world where the US debt doesn't matter because the fed just prints money to pay it.


There's certainly no risk of default, but monetary policy intended to curb inflation tends to hit the working class hard.


No, the monetary policy of every administration first and foremost has been to keep the music playing.

That causes anomalies like the inverse yield curve, where investors are getting higher yields on short-term bonds than long term bonds

Where in the world does putting money in a short term investment yield a higher interest rate than a long term investment, all other things being equal since we are discussing just treasuries?
Anonymous
Anonymous wrote:
Anonymous wrote:It sounds like you already know the answer, so what are you really asking?


Sounds like Trump advisers are clueless and looking for answers on DCuM



Right since Grok AI became a mechnazi they have nowhere else to turn.
Anonymous
Fiat currency always fails.

Nobody can stand in the way of printing money without getting steamrolled. The public demands consuming without producing and nothing can stand in its way without getting flattened.
Anonymous
Yes, it's OK until the music stops. Then it's catastrophic.

The buyers of the debt now are largely pension funds and have been for decades. There are less overseas buyers.

Do you know where your retirement is invested?
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