It keeps rising. Is it a problem?
>>543825209x-axis plox
>>543825209Have you seen the stock market? Record highs!
>>543825209Depends on anything you owe.
>>543825275we owe 40 trillioncan I borrow a cup of sugar?
>>543825209it's only a problem if you don't have access to the discount window
>>543825266They pay interest on those tarp bailouts from 2009. Hasn't hit them yet until the end of this quarter when they release results for investors. That world runs on credit btw. Paying Peter to pay Paul to pay Ester....same model except prime plus 1 is nearly that magic 7%.Imagine what credit cards are looking like now
>>543825209>he put happening sauce on the nothing burger
>>543825209qrd: >bonds make more profit than stonks>sell stonks
>>543825342No credit, cash...stash...gas or...ass only.Otherwise, that's 200% tariffs plus credit carry surcharge as it's all balancing profit versus the operating cost with credit because in a fucked up prime rate situation we aren't swallowing those costs.
>>543825209People that got ARM's are gonna be homeless
>>543825209why do you make this 1 post by this id thread every day kike when you clearly don't understand what that means?
>>543825209Explain to me like I'm a toddler I have no idea what this is
>>543825838its offering a nice 50k interest per year for a boomer millionbetter than any stock
>>543825962VLO is probably one of the few winners, as long as the oil and fuel supply squeeze keeps up.
>>543825962So basically you hold a million and you get 50k$ a year?That's 5% compared to stocks where you get 10% back, what's the point?
>>543825838The government likes to cut taxes and hand out gifts. In America, where the electorate demands this, it leads to a budget deficit of trillions annually. This is financed on markets, which are getting jumpy because of wars and irrational politics, while the ECB is reducing its bond stock and while AI companies vie for the same money. A combination of inflationary pressure, distrust and tight money supply, leads to interest rates on bonds climbing continuously. The higher they go, the less certain lenders are about whether America is actually good for it, pushing interest even higher. The problem gradually increases until America raises taxes and cuts spending. If they don’t panic sets in at some point. That would cause a stock crash and hyperinflation. When? Nobody knows. For now America can easily correct course, if taxes are raised and spending is cut. You tell me how likely it is team red or team blue will do this.
>>543826447If it keeps rising without control isn't the gain just perceived value?If people who invest know this why keep buying?
>>543825209No, Trump already said the plan is to erode the debt through inflation and growth. Yields and house prices will keep rising.
>>543825209The STOCK MARKET is at ATH. America is winning. You lost, tranny
>>543826254Stocks crash all the timeThe return on bonds is guaranteed unless the government collapses, and if that happens you have bigger problems than your portfolio
>>543825209You tell me
It's a problem if you live in the economically developed world, yes. Not "kill and eat your neighbors" tier like retards on twitter say, but hard times and shitty job prospects are likely.
>>543826595Buyers know America is good for it as things stand and is likely to be for a long time yet. They’re just a little less certain than before. Compare it to mileage on a car. A car with 80k km on it is still fine, and will be for a good while yet. When exactly does it break down? God knows. The parable only goes so far, because the economy also grows and America makes its own money. But there is limit to every country and America is one of the ones speedrunning to find theirs, like France is too for example.
>>543825209Is it bad that we're finally back up to pre-2008 levels? No
>>543826645the cost of owning a house will increase. houses are not increasing because nobody can afford record-high homes with high interest rates. the only winners are people who have enough money to buy houses in cash or have already locked in a low interest rate
>>543826873So eventually someone will lose a lot of money?
>>543827043It’s one option if there is no course correction (we lose the money via inflation). Another option is austerity+tax hike. Then the economy suffers a bit and we lose money that way. Because the matter is also undesirable, bond markets force our hands by asking an increasing premium. The cumulative load of debt maintenance, the stifling effect of higher mortgage rates etc. make the tax hike+austerity jncreasingly rational. This however can hardly be communicated to the public, and any politician knows they get guillotined for that move. And the beat goes on.
>>543826884Was the debt 40,000,000,000,000 in 2008? No. it was 10.
>>543826873The Eu will look like India way before the Us kicks the bucket.
>>543826873>buyers know America is good for it>meanwhile key bond-buyers like China and Japan are selling at an increasing ratehmmm
>>543826254If bond returns are close enough to the expected market returns, people will choose bonds because of the lower risk.
>>543825231Nobody cares about your "zoom-out" well poisoning. The market that could survive 1980s-style Volker interest rates no longer exists.
>>543827545There are very fragile situations in Europe as well. Too many taking comfort in the ‘whatever it takes’ policy of Draghi. The robust countries are under increasing pressure. Not great. I’d like to see France and to an extent Italy reform.
>>543826884Jfc will you fucktards ever stop?
>>543827545Poo colored hands typed this
>>543826254you give the money to the stock market they'll use it to lobby for more migrants and tax breaks. You give it to the government they'll blow up people in the middle east. Your choice.
>>543825209COLLAPSE
>>543826254Because M2 has gone up an average of 6.5% to 7% per year over long timescales. 7%/year implies a wealth half-life of 10-ish years. At 5%, bonds are still paying a discount to M2 inflation of -1.5% to -2% per year.Don't think M2 is a good deflator? Price Jack in the Box's Ultimate Cheeseburger ($1.99 in 2003-2004, $8 today), or your local taco shop's carne asada burrito. You will find many things which aren't beneficiaries of scaling productivity efficiency follow the roughly 6.5% to 7% inflation number on long time horizons. It's why you feel so poor, and why your boomer parents could afford a basic home, a few kids, and a couple cars, all on the man's median income, but buying a basic sub sandwich sets you back a week financially.
>>543826884You'll be at 1984 levels soon enough. This is a petro dollar universe and the Saudi connection is a little fucked at the moment along with diesel everywhere. This is what destroyed Carter. And whomever is after Trump will be strung up by fiscal policy just to keep the lights on.
>>543828740The top chart is a graphic representation of the erosion of purchasing power for the 'mean' Gross Domestic Income, today basically less than 1/3rd of what gramps made in 1960 in wealth terms.The top chart says "The mean GDI of given X-year in history feels like $Y thousand today, in today's money." If you make $60,000 today vs what the mean is (about $66K), deflating by M2 back to 1960 it would feel like about $180-$200K in stuff-you-can-buy-with-it terms.The bottom chart simply shows that, when taking M2 out, the S&P 500 index has gone nowhere since 1960. It is a demonstration that M2 is a good deflator and it turns stock index hokey sticks into horizontal-ish lines.
>>543825209>Is it a problem?Worse for every other currency.
>>543827043They already are, inflation is destroying every penny they make now. It's why it's called stagflation. 0 sum game. It's a giant make work project at this moment in time
>>543829166No, it's worst for you, because your shithole literally cannot exist as is without its twin deficits
>>543829166Yup because they borrowed from your bank and pass your rate hike to the client.
>>543828003it's good graph-posting etiquette
>>543828003You could post fax or you could post propaganda.You posted propaganda, even if you intended to post fax.You did the same thing as a reddit/twitter screenshot poster who crops out the date and fails to provide a link.You behaved like a bullshit artist.See my plots for what it *should* look like:>>543826054>>543828740>>543829102>>>/biz/62755805Ape me and you won't get called out as a bullshitter like you just did.
