Anonymous
07/08/2025 22:15
Subject: dollar national debt interest
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
Anonymous
07/08/2025 21:57
Subject: dollar national debt interest
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.
I know that printing money is tied in some way to loans/debt, it's not just putting more dollars out there. We are not set up like some countries that develop truly runaway inflation.
Spoken like someone who is clueless about how financial crises develop
Anonymous
07/08/2025 21:55
Subject: dollar national debt interest
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.
Anonymous
07/08/2025 21:55
Subject: dollar national debt interest
Anonymous wrote:We live in a world where the US debt doesn't matter because the fed just prints money to pay it.
I know that printing money is tied in some way to loans/debt, it's not just putting more dollars out there. We are not set up like some countries that develop truly runaway inflation.
Anonymous
07/08/2025 21:52
Subject: dollar national debt interest
Anonymous wrote:Agree with your theory, but the data YTD does not. Yields have been dropping.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.
Look wider than 1-5 years.
Anonymous
07/08/2025 21:49
Subject: dollar national debt interest
Nice speech, but the 10 yr yield has dropped from 4.57 to 4.41% YTD over the same period the dollar had dropped, so someone is showing up at the auctions to buy new issues. And, not saying T engineered this somehow. Personally, I think the yield should be higher, given all the debt.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%.
When investors lose confidence in America, they stop investing in America. International investors do not view the US as a reliable or stable partner for trade and commerce. They also stop buying bonds and dollar-backed securities and their value decreases. That affects interest rates, that causes the value of the dollar to decrease, and so on. The dollar's value has already dropped 10% since the beginning of the year. And, this is the doing of Trump and the Republicans. Meanwhile we create openings for China and others. We are doing Xi and Putin's work for them.
Anonymous
07/08/2025 20:28
Subject: dollar national debt interest
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%.
When investors lose confidence in America, they stop investing in America. International investors do not view the US as a reliable or stable partner for trade and commerce. They also stop buying bonds and dollar-backed securities and their value decreases. That affects interest rates, that causes the value of the dollar to decrease, and so on. The dollar's value has already dropped 10% since the beginning of the year. And, this is the doing of Trump and the Republicans. Meanwhile we create openings for China and others. We are doing Xi and Putin's work for them.
Anonymous
07/08/2025 20:28
Subject: dollar national debt interest
We live in a world where the US debt doesn't matter because the fed just prints money to pay it.
Anonymous
07/08/2025 20:25
Subject: dollar national debt interest
Sorry missed your question about other lending rates. A falling dollar will require higher offered interest, meaning higher interest rates on treasury bonds. Investors will ask other borrowers to pay higher interest rates when they see treasury rates go up because they will otherwise invest in treasury bonds.
Which brings up the phrase "pushing on a string". You may not have heard that since Bernanke was fed chair. You will hear it in the news again soon.
Which brings up the phrase "pushing on a string". You may not have heard that since Bernanke was fed chair. You will hear it in the news again soon.
Anonymous
07/08/2025 20:19
Subject: dollar national debt interest
No you are not correct. Bonds that have been issued in dollars have interest payments in fixed dollars, so the interest payments don't change if the dollar drops.
If the dollar is dropping, getting new bond sales may require a higher offered interest payment.
If the dollar drops imports become more expensive so inflation goes up.
Yes Trump does think he'll only have positive outcomes period.
If the dollar is dropping, getting new bond sales may require a higher offered interest payment.
If the dollar drops imports become more expensive so inflation goes up.
Yes Trump does think he'll only have positive outcomes period.
Anonymous
07/08/2025 19:57
Subject: dollar national debt interest
Agree with your theory, but the data YTD does not. Yields have been dropping.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.
Anonymous
07/08/2025 19:44
Subject: dollar national debt interest
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.
Anonymous
07/08/2025 19:31
Subject: dollar national debt interest
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%.
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%.
Anonymous
07/08/2025 18:39
Subject: dollar national debt interest
It sounds like you already know the answer, so what are you really asking?
Anonymous
07/08/2025 18:35
Subject: dollar national debt interest
I'd put this in the finance section but it is really political these days
Am I correct that if the dollar drops in value, treasury bond interest (and interest on the national debt) go up?
Or is there no direct connection between dollar value and treasury interest?
Does value of dollar have impacts on inflation?
How does the dollar value affect other lending rates?
Does Trump think he can have only positive outcomes for any decision he makes related to the economy?
Am I correct that if the dollar drops in value, treasury bond interest (and interest on the national debt) go up?
Or is there no direct connection between dollar value and treasury interest?
Does value of dollar have impacts on inflation?
How does the dollar value affect other lending rates?
Does Trump think he can have only positive outcomes for any decision he makes related to the economy?