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Gold overtakes U.S. Treasuries as the largest foreign reserve asset

economictimes.indiatimes.com

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Re: Gold overtakes U.S. Treasuries as the largest foreign reserve asset

#91

Post by epolanski »

aloha2436 wrote: post #26

America was in practice running an empire that collected tribute from the rest of planet earth in exchange for entries in a database denominated in a currency they controlled and that was accepted everywhere. Really the only way it could go wrong is putting it under the control of someone who doesn't understand the kayfabe...

US will have to refinance $ 10T of debt next year. That's a gargantuan amount of money and I see no scenario in which this won't have quite higher yields than the expiring one, remnant of the low rate decade.

With foreigners and hedge funds less prone to buy US debt right now it's going to be quite interesting to see what will happen.

Re: Gold overtakes U.S. Treasuries as the largest foreign reserve asset

#92

Post by BobbyJo »

theossuary wrote: post #85
fc417fc802 wrote: post #74

Earlier quoted context omitted.

I'm not going to take a side in the broader discussion here, however your response fails to engage with what was previously written. > Some abstract quasi moralistic reason What was presented was neither abstract nor moralistic. The argument was one of driving towards a cliff and taking preemptive action before reaching it.

No, it was driving towards a cliff and deciding to jump out of the car instead of pressing the breaks. If you're costing at work, worried about being laid off some day, the last thing you do is just quit; you job hunt and try to change habits. Pretending like we have to feel immense pain to strengthen the economy is the quasi moralistic reasoning of a moron

You're making a lot of abstract and quasi moralistic arguments for someone with such a distaste for them.

Re: Gold overtakes U.S. Treasuries as the largest foreign reserve asset

#93

Post by pfannkuchen »

unsnap_biceps wrote: post #84
hax0ron3 wrote: post #82

Earlier quoted context omitted.

I agree that your idea would be better. That said, it is still quite possible that even Trump's immigration approach is overall more good than bad for the country.

It's really not. They're deporting less people than Biden did during the same time[1]. They're spending record amounts of money per person deported as well. I don't disagree that we should be deporting people faster, but this is not the way to accomplish that goal at all. Nor should we be building huge detention facilities. We should be making the process go smoother and faster, not holding people. [1] https://en.wik…

Net?

Re: Gold overtakes U.S. Treasuries as the largest foreign reserve asset

#94

Post by fakedang »

hax0ron3 wrote: post #82
avidiax wrote: post #81

Earlier quoted context omitted.

If you really want to get rid of illegal immigrants, you don't need ICE doing sweeps. Just make them unemployable. Setup an effective employment eligibility system, and require that employers verify the workers in the system before any payment over $100. Collect biometrics from workers and verify against IRS records. Employers that flout this get fines of 10x wages paid, up to N% of revenue, and maybe jailtime for ow…

I agree that your idea would be better. That said, it is still quite possible that even Trump's immigration approach is overall more good than bad for the country.

Trump's immigration approach is not an approach - it's just an excuse for him to create his own Gestapo.

What was the point of sending ICE, a "domestic" agency, to the Winter Olympics, or letting them take over duties from the TSA? What does an "Immigration and Customs Enforcement" agency have anything to do at a foreign country? What's the point of the Secret Service then?

Re: Gold overtakes U.S. Treasuries as the largest foreign reserve asset

#95

Post by mememememememo »

bijowo1676 wrote: post #45
andsoitis wrote: post #40

Earlier quoted context omitted.

> Gold has always been stable, because it is physically limited. Incorrect. Physical scarcity matters, but it’s not the main driver. Gold’s price is far more sensitive to interest rates, dollar strength, sentiment and fear, speculative flows. The stability it’s historically shown was mostly the result of fixed monetary systems, and those are long gone.

its because you are measuring stable Gold in volatile fiat which is being printed every day depending on the factors you mentioned (interest rates, expectations of future growth, sentiment etc). because you are getting paycheck in fiat, you are psychologically programmed to think of fiat as something stable, and Gold as volatile. while in reality prices expressed in Gold ounces remained fairly stable for example: htt…

Fiat is a shit investment that loses even with interest but it isn't really volatile.

Re: Gold overtakes U.S. Treasuries as the largest foreign reserve asset

#97

Post by NewJazz »

themafia wrote: post #88
aloha2436 wrote: post #59

Earlier quoted context omitted.

> We'll see if the founders concept of a union of states is worth as much as it was proclaimed to be. States can't issue their own currency, they're all going wherever the nation goes on this one.

> States can't issue their own currency Of course they can. You're pointing out that federal law currently prohibits it? I already understood that to be the case when I made my point. > they're all going wherever the nation goes on this one. Unless they all collectively decide on a different course of action. The constitution was left amendable. It has been done several times already. A simple option is to repeal the…

How would that benefit anyone?...

The core feature of the senate that makes it so indefensible is how it assigns power to states, not people. That relationship cannot be amended, per article 5 of the us constitution.

Re: Gold overtakes U.S. Treasuries as the largest foreign reserve asset

#98

Post by laughing_man »

aloha2436 wrote: post #51
laughing_man wrote: post #31

Earlier quoted context omitted.

[flagged]

> More importantly, in the context of this discussion, every president since Bush's first term has had larger deficits than any previous president, regardless of party. Taking on long term debt at or below the risk free rate _is the point._ It didn't devalue the currency because the global economy was structured around buying that debt. You just need to not jeopardize that second point.

It's a snowball rolling downhill that's reached the point where it is out of control. We cannot stop taking on more debt, which is, let's face it, just printing money electronically. At some point everything will blow up. I just hope it doesn't happen until I'm gone.

Re: Gold overtakes U.S. Treasuries as the largest foreign reserve asset

#99

Post by laughing_man »

rapind wrote: post #44
laughing_man wrote: post #31

Earlier quoted context omitted.

[flagged]

This glosses over what Bush was handed from the previous guy and then what he left behind for the next guy.

The "previous guy" was constrained by a once-in-a-lifetime Congress that was serious about deficits, and he also benefited by another once-in-a-lifetime spurt of economic growth that dramatically increased tax revenue.

As soon as Congress realized they'd been handed a deficit-free budget they went about spending with wild abandon.

And anyway, since that guy we've had two presidents over three terms where the other party controlled the presidency and they didn't and they certainly didn't break the pattern.

Let me ask you this: If you wanted to vote for a guy (or gal) who was serious about reducing the deficit instead of someone who doesn't care as long as the wheels don't come off during his term, who would you vote for?

Re: Gold overtakes U.S. Treasuries as the largest foreign reserve asset

#100

Post by neonstatic »

aloha2436 wrote: post #26

America was in practice running an empire that collected tribute from the rest of planet earth in exchange for entries in a database denominated in a currency they controlled and that was accepted everywhere. Really the only way it could go wrong is putting it under the control of someone who doesn't understand the kayfabe...

I think pinning this on one guy is a gross oversimplification driven by personal dislike for that guy. In my opinion larger forces are at play. I don't mean it in a conspiratorial way; simply put, the structure of global trade, economy, military power, etc. have shifted to such a degree, that this process has become inevitable.
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