I’m sure absolutely nothing terrible is going to happen when inflation for September was 8.2% but the 10-YR Treasury is 4.13% currently. Nothing to worry about at all. I’m sure everybody will be lining up around the block to buy treasuries that’ll pay out half the current inflation rate 10 years from now. Sounds totally logical.
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My prediction is, no matter what the Fed/treasuries/market/housing/rates/etc do, that the wealth/income inequality gap will increase.
Replace “is going bankrupt” with “has been bankrupt.” Ponzi Schemes take a while for the last of the victims to look down all at once and see the tiny little river way below.
You mean that fat little Jew troglodyte Yellen isn’t going to fix it? I’m shocked.
As an aside, u.s. treasury series I bonds currently paying 9.62%, with limitations of course.
You can lock in 6 months at this rate if you buy before the end of the month.
$10,000 limit. Big whoop. HR
https://www.zerohedge.com/political/texas-ag-urges-prosecution-over-horrific-child-friendly-drag-show-near-dallas#comment-stream
FYI, it’s as fake as the moon landing. Only the astute will see it, all others will believe it as gospel.
Carry on …..
P.S. Stephanie, sorry about hijacking your thread.
Are you saying that if you freeze the video at 27 seconds and look at the ladies cell phone, you’ll clearly see that it’s as fake as the moon landing.
Steph, you have been posting some interesting stuff.
Right now, money is flowing heavily into US dollars. Most currencies are dropping heavily against the US dollar. Right now, for instance, you can get Turkish bonds for like 13% return, and they are as you might imagine having trouble selling them. It seems that people are currently prepared to take a several percent real loss in interest vs inflation for what they perceive to be the low risk US dollar.
People are going for what they believe to be the lowest risk, as stocks, property, etc may all do less well than the 4% US dollar return.
I would just point people to things like KMI and OKE which are gas and pipeline operators paying in the 6-7% yield range. HR
Nice insights on investing and risk perception – (I don’t get the downvote). Getting it back, even with low yield, is better than not getting it back at all…
FDI flows to the U.S. are based on return, but also on pereceived stability. The perception, for many deploying capital, is that the least dirty shirt is still the US (right or wrong), and there is still a “rule of law” in the US and it is applied less politically for financial/business (for the most part, of course).
As they/FED continue to raise, the US (and other areas of perceived stability – east or west) will suck up more and more FDI and that pile is a fixed amount at any given time -there is only so much real savings/capital that can be delpoyed. I believe the US will suck up the most as a percentage available at any given time – at least for a while.
Turkish bonds at 13 sound great! Until they default or massively devalue. Same with oil stocks or Altria (I think that yields 8+ right now…until it goes to 20 and divvy to .80 cents or something…I have held Altria since before it split off…average points over 23+ years is probably like 4…it kept up with Shadow Stats for a long time, but I always knew the Big Ponzi was there and waiting).
Noting Anon Belwo: Gas/Oil stocks can be great for dividends too…until they aren’t. Timing is everything in those – hodlrs get burned! Have an exit plan and stick to it if you buy – just a suggestion based on being burned!
we’re doomed,,,,,,
Like Zero Hedge says, “on a long enough timeline ” we all be fuqued. HR
Remember when the “Inverted Yield Curve” would have all the financial TV guys flopping around on the floor like fish. I don’t think it’s ever been this out of whack yet we hear no shrieking about inverted yield curves. The 2 and the 10 are both higher than the 30. Thank goodness we have the brilliant Dementia Joe gang in charge. Eek.
HR
What few people really understand is that inflation causes deflation in the bond market, and that is what pushes the interest rates up. Inflation causes the value of the dollars repaying the bond to be worth less in the future, that is money destruction. Whenever you have money destruction, it simply disappears, and there is less money in the pool to purchase future bonds. If you buy a bond for $100 today, and the value of what you are paid back in the future is $90, then that is all you have to purchase new bonds. The correction for this is to have real interest rates at some point exceed the rate of inflation. The only alternative is a complete collapse of the economy in which the value of money outpaces the value of assets, goods, and services. The last time that happened was the Great Depression.