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US Treasury undertakes historic intervention in yen market

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Re: US Treasury undertakes historic intervention in yen market

#201

Post by jordanb »

don_esteban wrote: post #199
jordanb wrote: post #197

Earlier quoted context omitted.

> Anybody with large enough holding of US treasuries has leverage over the US: Large selling of those treasures will raise the yield on them, which is the last thing the US in its current situation needs. No Japan or China or anyone else who owns treasuries can not control the yield on the US Treasuries because that is controlled by the Fed. The Fed has near infinite power to intervene to make the treasury yields be…

> No Japan or China or anyone else who owns treasuries can not control the yield on the US Treasuries because that is controlled by the Fed. The Fed has near infinite power to intervene to make the treasury yields be what they want. No. The yield is determined by what the buyers demand. The Fed can distort the market by buying treasures themselves. But that is not near infinite power. It fuels inflation and reduces c…

> The yield is determined by what the buyers demand

Your mistake is misunderstanding the power central banks have in managing these assets. The Fed can make the yield whatever it wants. The Fed potentially has reasons to let the yield be high but it's a choice.

> The Fed can distort the market by buying treasures themselves

What you call "distorting the market" the Fed would call something like "setting the parameters of the market".

Regardless if you're ideologically opposed to the Fed actively managing the market for treasuries. The fact is that they can, and they do.

> inflation and reduces credibility

So you admit that the Fed has this power but they just choose not to exercise it? In any case, the Treasury's actions "fuels inflation" every bit as much as any intervention the Fed might take in the bond market.

Re: US Treasury undertakes historic intervention in yen market

#202

Post by don_esteban »

jordanb wrote: post #201
don_esteban wrote: post #199

Earlier quoted context omitted.

> No Japan or China or anyone else who owns treasuries can not control the yield on the US Treasuries because that is controlled by the Fed. The Fed has near infinite power to intervene to make the treasury yields be what they want. No. The yield is determined by what the buyers demand. The Fed can distort the market by buying treasures themselves. But that is not near infinite power. It fuels inflation and reduces c…

> The yield is determined by what the buyers demand Your mistake is misunderstanding the power central banks have in managing these assets. The Fed can make the yield whatever it wants. The Fed potentially has reasons to let the yield be high but it's a choice. > The Fed can distort the market by buying treasures themselves What you call "distorting the market" the Fed would call something like "setting the parameter…

To me it seems that you are ideologically opposed to anybody having the leverage over Fed, and believe Fed has overpowered magic.

There is no point repeating what maxglute wrote above.

> So you admit that the Fed has this power but they just choose not to exercise it?

Fed has the ability to buy as much treasuries as it wants. However, the power of that ability is limited, especially in situation like we are now, with rising inflation, high debt and dubious US credibility.

Re: US Treasury undertakes historic intervention in yen market

#203

Post by csomar »

mono442 wrote: post #159
inigyou wrote: post #143

Earlier quoted context omitted.

Impossible to know. The US sits on the precipice of a bond interest death spiral.

the fed can bring the bond yields down, it's not really a problem

Yes, everyone knows it's a button you press. Trump has been shouting about that for the last year.

Re: US Treasury undertakes historic intervention in yen market

#204

Post by iamnothere »

estearum wrote: post #198
iamnothere wrote: post #195

Earlier quoted context omitted.

Well then you wouldn’t be in alignment with the mainstream of your party, who does seem to want that, at least if you look at blue state legislation. As to how it has to do with the party, we were discussing the Democratic Party, Russia was a brief aside. But I do find that people’s position on the Russia/Ukraine conflict typically tends to say a lot about their other positions.

Can you identify specific blue state legislation that creates or attempts to create open borders? Are you referring to sanctuary policies which just say a locality won't expend local resources to enforce federal immigration law? Not sure what you could possibly be referring to here. You're aware that actual open borders is an extremely, extremely fringe position, right? The borders between US states are "open borders…

Actually I was referring mostly to the Internet regulation with regards to blue state legislation, but regardless, yes the sanctuary policies could be considered (in my view) as support for nonenforcement of border controls, or in other words, open borders. I guess it’s not technically open borders if your policy is that you can’t come across unless you manage to survive the dangerous illegal crossing and evade the border patrol, then you can stay. Fine. Guess you got me there.

I don’t really feel like rehashing the open borders motte and bailey that always happens on the internet, yes most Dems don’t support actual open borders but the policies they push for are equivalent. If there’s one thing Americans can agree on, it’s that they like having an underpaid slave caste, even if Republicans do pretend that they are against it.

Re: US Treasury undertakes historic intervention in yen market

#205

Post by estearum »

iamnothere wrote: post #204
estearum wrote: post #198

Earlier quoted context omitted.

Can you identify specific blue state legislation that creates or attempts to create open borders? Are you referring to sanctuary policies which just say a locality won't expend local resources to enforce federal immigration law? Not sure what you could possibly be referring to here. You're aware that actual open borders is an extremely, extremely fringe position, right? The borders between US states are "open borders…

Actually I was referring mostly to the Internet regulation with regards to blue state legislation, but regardless, yes the sanctuary policies could be considered (in my view) as support for nonenforcement of border controls, or in other words, open borders . I guess it’s not technically open borders if your policy is that you can’t come across unless you manage to survive the dangerous illegal crossing and evade the…

~25 states (almost all of them red) instituted porn restrictions, including internet age verification laws, in the last few years.

Another handful of states across the red/blue gamut, but actually still red-bent, are pushing for social media restrictions.

What on earth are you talking about? Concretely what are these blue state laws that are so pervasive that you can derive the "mainstream position" from them?

Also why would Berkeley, California have any obligation or interest in enforcing border controls when those are 1) federal laws and 2) the border is 600 miles away?

Re: US Treasury undertakes historic intervention in yen market

#206

Post by jordanb »

don_esteban wrote: post #202
jordanb wrote: post #201

Earlier quoted context omitted.

> The yield is determined by what the buyers demand Your mistake is misunderstanding the power central banks have in managing these assets. The Fed can make the yield whatever it wants. The Fed potentially has reasons to let the yield be high but it's a choice. > The Fed can distort the market by buying treasures themselves What you call "distorting the market" the Fed would call something like "setting the parameter…

To me it seems that you are ideologically opposed to anybody having the leverage over Fed, and believe Fed has overpowered magic. There is no point repeating what maxglute wrote above. > So you admit that the Fed has this power but they just choose not to exercise it? Fed has the ability to buy as much treasuries as it wants. However, the power of that ability is limited, especially in situation like we are now, with…

By the way the final thing you appear to not be understanding is that the Treasury had to borrow money to buy those yen. What do you think gets issued when the US Treasury borrows money?

Re: US Treasury undertakes historic intervention in yen market

#207

Post by scoofy »

mono442 wrote: post #187
scoofy wrote: post #182

Earlier quoted context omitted.

QE is effective when inflation is low or negative. It creates a larger money supply. Inflation is already high.

It doesn't change the M1 which is relevant for inflation.

M2 and MB are also relevant.

Re: US Treasury undertakes historic intervention in yen market

#208

Post by iamnothere »

estearum wrote: post #205
iamnothere wrote: post #204

Earlier quoted context omitted.

Actually I was referring mostly to the Internet regulation with regards to blue state legislation, but regardless, yes the sanctuary policies could be considered (in my view) as support for nonenforcement of border controls, or in other words, open borders . I guess it’s not technically open borders if your policy is that you can’t come across unless you manage to survive the dangerous illegal crossing and evade the…

~25 states (almost all of them red) instituted porn restrictions, including internet age verification laws, in the last few years. Another handful of states across the red/blue gamut, but actually still red-bent, are pushing for social media restrictions. What on earth are you talking about? Concretely what are these blue state laws that are so pervasive that you can derive the "mainstream position" from them? Also w…

California’s OS age attestation/age bracket API law, Colorado’s similar law, and the pending laws in Illinois and New York. Michigan had a law in process but pulled it because they decided it was unworkable. Virginia has a social media law that’s tied up in the courts. I’ll add to this the slew of laws targeting 3D printing, which seem to be solely a blue state phenomenon.

Yes, red states have their own age verification laws—I never said they didn’t. Hence why I’m not friendly towards either party.

Constant nitpicking and gaslighting also seem to be typical from modern Dems.

Re: US Treasury undertakes historic intervention in yen market

#209

Post by estearum »

iamnothere wrote: post #208
estearum wrote: post #205

Earlier quoted context omitted.

~25 states (almost all of them red) instituted porn restrictions, including internet age verification laws, in the last few years. Another handful of states across the red/blue gamut, but actually still red-bent, are pushing for social media restrictions. What on earth are you talking about? Concretely what are these blue state laws that are so pervasive that you can derive the "mainstream position" from them? Also w…

California’s OS age attestation/age bracket API law, Colorado’s similar law, and the pending laws in Illinois and New York. Michigan had a law in process but pulled it because they decided it was unworkable. Virginia has a social media law that’s tied up in the courts. I’ll add to this the slew of laws targeting 3D printing, which seem to be solely a blue state phenomenon. Yes, red states have their own age verificat…

Sorry your example of overbearing suppression of Internet rights is a law that requires OS developers to collect broad age information and then to pass that information to any app developer that requests it (with user permission)?

Sheesh, that's some goofy stuff haha.

Re: US Treasury undertakes historic intervention in yen market

#210

Post by Ey7NFZ3P0nzAe »

ProllyInfamous wrote: post #125
Aboutplants wrote: post #39

Earlier quoted context omitted.

Which is hilarious because 5-10 billion dollars worth of Yen is not going to do much in the grand scheme of things. It’s a speed bump not a stop sign.

"Show me the personal incentives, and I'll tell you the outcome." –Someone way the hell wiser than myself

It's Charlie Munger AFAIK
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