The Rokslide Stock Traders Thread

Explain please. I get the concept, basically diluting our $ further.

Basically no one wants to buy our debt at current rates and when that happens the Fed must print (devaluing the USD) to buy the debt they created and then tax us to pay it back.

Japan is having the same issue, the Bank of Japan is having to print to buy their own debt, instead of buying US debt (bonds), which they are a large holder of US debt. Remember the yen carry trade that caused the dip last year, that was caused from a small rate increase. In order for other countries to buy debt they will want a better return, which in turn Japan would have to raise their rates even more to attract buyers, if no buyers the cycle continues and ramps.

That is what could happen with US bonds if no one buys. We have to refi our national debt, that’s one reason why the current administration wants Powell to cut rates. With the new bill adding trillions, potential bond buyers will want a better return due to the risk of the US not paying, which increases rates or the Fed prints to buy the unbought bonds.

10 yr is at 4.5$, 30 yr is at 4.95%

Hope I explained that correctly ha


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@MountainTracker is right. Buyers are shying away from buying long maturities.
It makes sense, why would anyone lock up their money for 30 years at a low rate in this volatile inflationary environment?

The Japanese have gotten away with it for awhile...but now that the Biden admin and some of the European countries have unleashed horrible inflation, it has a lot of buyers nervous.

This is a HUGE deal. How are countries going to fund their long term debt? If countries have to pay very high rates on their massive debt, their deficit spending goes WAY up.

Does anyone remember getting over 10% on long term treasuries during the Carter Admin? Along with that came 18%+ mortgages that killed the housing market. I'm not saying this whole thing is going to blow up- but it could. Then stuff like Oil and commodities will go through the roof.

It surprises me that voters around the world are not more aware of the importance of being fiscally conservative. Watch Portugal, Italy, Spain, Japan and France for a break in the bond market- those will go first.
 
@MountainTracker is right. Buyers are shying away from buying long maturities.
It makes sense, why would anyone lock up their money for 30 years at a low rate in this volatile inflationary environment?

The Japanese have gotten away with it for awhile...but now that the Biden admin and some of the European countries have unleashed horrible inflation, it has a lot of buyers nervous.

This is a HUGE deal. How are countries going to fund their long term debt? If countries have to pay very high rates on their massive debt, their deficit spending goes WAY up.

Does anyone remember getting over 10% on long term treasuries during the Carter Admin? Along with that came 18%+ mortgages that killed the housing market. I'm not saying this whole thing is going to blow up- but it could. Then stuff like Oil and commodities will go through the roof.

It surprises me that voters around the world are not more aware of the importance of being fiscally conservative. Watch Portugal, Italy, Spain, Japan and France for a break in the bond market- those will go first.

Japan had stated their situation is worse then Greece when they had fiat issues. France is starting to see problems.

I’ve seen talk of offering btc backed bonds which would allow investors the ability to protect their initial investment and have the chance to get up to 15% on top of that. I’m not sure how all the math works but I’ve seen it discussed multiple times. Russia recent launched btc backed bonds.

I also read today that btc otc is down to 114kish from 240kish 3.5 weeks ago. OTC is hard to track so take it for what it’s worth.


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Might have to ditch the remaining that I have. Reverse splits have never worked out well for me.
Time will tell, but in almost in instances, especially with small companies, it's the beginning of end....

GE did a RS a few years ago, but it's GE.


Eddie
 
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