I wonder which day will be the day the fat man eats a mint and blows up
Weak U.S. 5-year debt auction raises worries
reuters.com
Weak U.S. 5-year debt auction raises worries
1–10 of 23 posts
Re: Weak U.S. 5-year debt auction raises worries
#2I wonder which day will be the day the fat man eats a mint and blows up
Re: Weak U.S. 5-year debt auction raises worries
#3This doesn't give much confidence that there will be sufficient funding for the huge deficit this year.
Re: Weak U.S. 5-year debt auction raises worries
#4The Fed will buy the notes, as they have been doing for a while :)
Re: Weak U.S. 5-year debt auction raises worries
#5This doesn't give much confidence that there will be sufficient funding for the huge deficit this year.
The fed's just gonna have to print...and print...and print. hyperinflation here we come.
Re: Weak U.S. 5-year debt auction raises worries
#6Re: Weak U.S. 5-year debt auction raises worries
#7Earlier quoted context omitted.
The fed's just gonna have to print...and print...and print. hyperinflation here we come.
Let's not exaggerate. Inflation? Probably. Hyperinflation? No.
Germany just reported its first DEFLATION in 22 years...
Almost like we're sitting the top of an unstable equilibrium that is only getting taller.
Re: Weak U.S. 5-year debt auction raises worries
#8Earlier quoted context omitted.
The fed's just gonna have to print...and print...and print. hyperinflation here we come.
Let's not exaggerate. Inflation? Probably. Hyperinflation? No.
hyperinflation has to do with a loss of faith in the currency. Foreign debt holders know that this America empire is sailing into sunset, and has no way to pay its trillions of dollars back. They'll all dump it one night, causing the dollar to drop 30-40%
Re: Weak U.S. 5-year debt auction raises worries
#9Earlier quoted context omitted.
Let's not exaggerate. Inflation? Probably. Hyperinflation? No.
hyperinflation has to do with a loss of faith in the currency. Foreign debt holders know that this America empire is sailing into sunset, and has no way to pay its trillions of dollars back. They'll all dump it one night, causing the dollar to drop 30-40%
this America empire is sailing into sunset, and has no way to pay its trillions of dollars back.
The US will be able to pay the trillions of dollars back. How? Just printing more dollars and using them to pay. The problem for the investors is that those dollars might not be worth it too much.
But this will be in many years. Right now US creditors don't want to dump the dollar because it would decrease the value of what they hold.
Re: Weak U.S. 5-year debt auction raises worries
#10Earlier quoted context omitted.
Let's not exaggerate. Inflation? Probably. Hyperinflation? No.
hyperinflation has to do with a loss of faith in the currency. Foreign debt holders know that this America empire is sailing into sunset, and has no way to pay its trillions of dollars back. They'll all dump it one night, causing the dollar to drop 30-40%
Even if this happened (which I very much doubt it will because Japan, China etc. don't want to write off 40% of their holdings or get into a vicious economic war with the US), that's a long way from hyperinflation and general fiscal Armageddon.
US business would love the dollar to fall by 30%, our exports would soar and those companies that depend heavily on manufacturing in China could probably use other hard currency like the Euro. It would crimp our military operations overseas, but when you get down to it a lot of countries still want to be under the American nuclear umbrella and we paid for the nukes a long time ago.