>>62296849what does this mean??
>>62296850It means op is a faggot
>>62296850Firstly it means that OP is a fag. Secondly, it means that the Trump administration has a plan to fix the economy, which necessitates some money in the short term.
>>62296849So why dont you buy them if you think market is going to crash?
why would anyone buy this shit? if my portfolio only paid out 5% over 30 years i would kill myself that is awful
>>62296904Rich people that feel safer in these than stocks. Also, traders.
>>62296904It's 5% per year. It's a near zero risk way to invest (historically at least). If you have a million dollars that's $50k/year. Not that worst for not having to worry much.
>>62296850One effect is the housing market will suffer. Mortgages will be more expensive, less people want to sell and buy. Not sure how to profit on it.
sounds good until you realize inflation is like 20+% a year
>>62296966You need a million dollars to make 50K? and it takes all year like a job or something. This is only good for the elderly who can't even login to a computer.
>>62296849Meanwhile.....
>>62296850It means that the US government is now required to roll over more than a third of its debt from very low interest rates to current market rates. Interest on the National debt is already the single largest cost item in the Federal budget and under best case assumptions will exceed all revenue in about 15 years. That means paying the mortgage with a credit card. Small wonder that yields are rising while demand for US treasury paper is in steady decline. In short, it means that the US government will be running out of willing creditors to lend it money and will have no choice but to monetize the debt as it spins out of control. It is the beginning of the inevitable inflationary collapse of the currency.
>>62297044Yeah, I've more than doubled my income since 2 years ago and feel twice as poor. I'm thinking it's over.
>>62297044More like 8%. It was only 20% for a couple of years immediately after they turbo-printed 40% of the monetary supply during covid
>>62298083>Small wonder that yields are rising while demand for US treasury paper is in steady decline.What? Yields are calculated from the market value of the bonds, which is calculated from the demand. Your sentence gets the causation all wrong, implying you don't know anything about bonds.
>>62298295I think You have it wrong. Yield is climbing to attract wary capital to a shaky market.
>>62298295China and Japan are shedding US treasuries at an accelerating pace.
>locking your money for 30 yearslol lmao
>>62298929Perfect for a boomer couple with 1 mil folio who is looking to lock in a guaranteed income of 50k a year
>>62298929>locking your money for 30 years in a shitcoin like USD
>>62298929Just buy sgov
>>62298295I was gonna say. These jeets have clearly never bought bonds. Periodically there is an “auction” for US bonds, and depending on demand, the price you pay upfront for the bond goes up or down. Eg, for a $10,000 1-year note, if demand is such that the market demands a 5% yield, you pay about $9524 for the bond and once it matures you get paid $10,000. If the market rate was $9434 for the bond, then that’s a 6% APY. Lower bond price == higher yield. They’re not different things
>>62298091I don't get why simple stuff in the Scandinavian countries only get ~25-75% more expensive when I read about the states. Housing bubble already all-time high and haven't done any high spike like in the US at all. I guess Blackrock has something to do with that.I guess we've got a lot of functioning local produce we're dependent on ourselves but don't have oil production like you. What I am getting at is it's all a fake economy even moreso in the EU I think because of our vassal state economy, and the only thing you're able to navigate with is the price of oil. Then, perhaps uranium or coal, copper and such. But oil is 90% of it.Oil spiking 100% must have its consequenses sooner or later for everything, even the dollar. It'll just be a slow decline and yes the only alternative to keep any global trade going on will be crypto or yuan, no doubt about that.I'll be surprised to see the dollar keepin up for perhaps another btc cycle, though. It'll more than likely be a slow bleed.
>>62298929you can trade and sell them, they have a current valueyou just transfer the contract for cash
>>62298083>beginning of the inevitable inflationary collapse of the currencyGood
>>62296890They still under perform inflation. A crash won't incite a deflationary cycle that would benefit bond holders because the governments only real options are continued money printing. Debt too big, this time is unironically different.
>>62299276probably helps that its not as full and you don't have literally millions of people moving in every year. house shit does still get very expensive in the capital cities though
>>622968495% is to low to invest.. But it is getting interesting for sure.
>>62300864>the governments only real options are continued money printing.You can just raise taxes, getting to European level taxation would essentially make the problem go away..
>>62296849Who the fuck is buying 30 year bonds at 5%? There's no way the US government is going to remain solvent for 30 years unless they massively devalue the currency (making the bonds worthless).
>>62301386>You can just raise taxesThat's political suicide in muttland.
>>62296966With current inflation that’s -30% value/buying power per year. Yes, I am saying inflation is at least 8% a year.
>>62296966> 5% barely beats inflation and you're acting like a landlord with a mil in the bank. ngmi if that's your peak.
>>62301390Or return to the gold standard.
I sold all my SP500 a month ago and went all in on the bottom of US 20y bond dividend etf's, does this mean i'm gonna win?
>>62298083Yet no one except marxologues know why this happens.
