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Fed hikes rates as inflation worries push up bond yields

reuters.com

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Re: Fed hikes rates as inflation worries push up bond yields

#41

Post by netbioserror »

adventured wrote: post #33
andy_ppp wrote: post #23

So, during the Great Depression who ended up doing well? What can be applied to today?

There isn't going to be a great depression. The US is going to debase itself endlessly through spend-print-spend-print. At some point they may load up enough debt that the economy suffers a gradual heat death, in the style of Japan, wherein too much of your national capital is going to debt maintenance, sitting in a low yield blackhole sucking the dynamism out of your system (instead of going to productive use, busin…

The turning point is approaching: Interest rates will gradually overtake all other gov't expenditures. All politics will revolve around shoring up the parasitic drain on the rest of absolutely everything.

Re: Fed hikes rates as inflation worries push up bond yields

#42

Post by gloryjulio »

kadoban wrote: post #7
leptons wrote: post #3

Earlier quoted context omitted.

This comment isn't helpful. Please explain for those of us without a degree in economics.

Inflation is high, so interest rates need to go up to try to slow that, but the economy isn't doing amazing already, and higher interest rates won't help that. Not to mention the US debt is _high_ as hell and bond yields mean that's more expensive. And the country is run by a broken fool who has no interest or ability to fix any of that.

There is also insane amount of debt from ai related investment. China's free model is crushing the ai margins while these companies need to pay their debt and obligations. The debt bomb clock is ticking.

The next few years would be fun.

Re: Fed hikes rates as inflation worries push up bond yields

#43

Post by phendrenad2 »

dabinat wrote: post #27

Prediction: this causes a recession in two years, right after a Democrat wins the White House, who will be blamed for it. The economy will turn around after a few years, just in time for a Republican to win and claim they fixed it. This is how Republicans have a reputation for being economically savvy despite actual evidence to the contrary, because the general population doesn’t understand that economics runs on a t…

"Global depression imminent, here's what it means for this poor American political party"

Re: Fed hikes rates as inflation worries push up bond yields

#44

Post by whateveracct »

leptons wrote: post #3
bwb wrote: post #2

Get ready for a fun ride my friends :) Fun ride = Oil is going up, possibly for a long time, which will have a big inflationary effect on everything. And it appears the USA government has lost the conflict it started and effectively given control over key oil delivery channels to Iran. Not to mention Saudia facing real issues from rebel groups / Yemen (simplification). Government debt is high in several key economies…

This comment isn't helpful. Please explain for those of us without a degree in economics.

why are you responding to a person like it is an LLM?

Re: Fed hikes rates as inflation worries push up bond yields

#45

Post by vasco »

dabinat wrote: post #27

Prediction: this causes a recession in two years, right after a Democrat wins the White House, who will be blamed for it. The economy will turn around after a few years, just in time for a Republican to win and claim they fixed it. This is how Republicans have a reputation for being economically savvy despite actual evidence to the contrary, because the general population doesn’t understand that economics runs on a t…

Easy fix, have the democrats lose the next election and you break the spell. It's all military industrial complex anyway.

Re: Fed hikes rates as inflation worries push up bond yields

#46

Post by phendrenad2 »

conception wrote: post #36
andy_ppp wrote: post #23

So, during the Great Depression who ended up doing well? What can be applied to today?

Own stuff, not paper.

That's for hyperinflation. In a crash, you actually do want money (if you can find a job).

Re: Fed hikes rates as inflation worries push up bond yields

#47

Post by nemomarx »

rayiner wrote: post #15
kadoban wrote: post #7

Earlier quoted context omitted.

Inflation is high, so interest rates need to go up to try to slow that, but the economy isn't doing amazing already, and higher interest rates won't help that. Not to mention the US debt is _high_ as hell and bond yields mean that's more expensive. And the country is run by a broken fool who has no interest or ability to fix any of that.

> And the country is run by a broken fool who has no interest or ability to fix any of that. Trump will be gone in three years, but you'll still have an electorate that wants more free stuff while also getting tax cuts. There is zero appetite for fiscal reform in the U.S. The geometric growth rate of U.S. debt has been consistent since 2010 and will remain so when AOC is President: https://usafacts.org/answers/how-mu…

You really really just need to raise taxes. Just find a way to sell that to the public (focus on the rich or large corporations or whatever outgroup you want basically)

Re: Fed hikes rates as inflation worries push up bond yields

#48

Post by stymaar »

kadoban wrote: post #7
leptons wrote: post #3

Earlier quoted context omitted.

This comment isn't helpful. Please explain for those of us without a degree in economics.

Inflation is high, so interest rates need to go up to try to slow that, but the economy isn't doing amazing already, and higher interest rates won't help that. Not to mention the US debt is _high_ as hell and bond yields mean that's more expensive. And the country is run by a broken fool who has no interest or ability to fix any of that.

QE without public debt sterilization is going to appear as the costliest macroeconomic mistake of the early 21st century.

Re: Fed hikes rates as inflation worries push up bond yields

#49

Post by jimmar »

dabinat wrote: post #27

Prediction: this causes a recession in two years, right after a Democrat wins the White House, who will be blamed for it. The economy will turn around after a few years, just in time for a Republican to win and claim they fixed it. This is how Republicans have a reputation for being economically savvy despite actual evidence to the contrary, because the general population doesn’t understand that economics runs on a t…

So, you're aligned with President Trump who wants to cut rates, then?
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