Posted on 11/04/2014 11:42:50 AM PST by SeekAndFind
for later
I have already come to terms with working until I drop or start slobbering too much to be in public.
At some point lenders (buyers of debt) will step up and say they need a better return for the risk of default they are taking.
The government buying its own debt is unsustainable.
Bank interest rates are never coming back because they now borrow their guaranteed money from the Fed. If the loan goes bad the government (we) pay for it. What bank is ever going to go back to the old ways?
Inflation is screwing us badly right now. The governments inflation figures are bogus. Food inflation is terrible so even peanut butter and jelly is vastly more expensive.
I have no choice but to have some investments still at risk or inflation will take everything.
Nearly every other government in the world is in as bad or worse shape. They have every incentive to keep the game of three-card monte going.
The already retired are screwed more:
a)If they have a pension plan, most will file bankruptcy and
the payments will either stop or be a small fraction of the expected payment.
b)If they have a fixed income the printing of money will be expanded to pay for unfunded entitlements, and the lying about inflation will continue to keep the COL adjustments low.
If you are yet to retire, invest in assets that will keep pace with inflation. Invest in marketable skills/activities that generate income.
Your chart will be exploited by Leftists to make the case that those EEEEEEEVIL Corporations are not paying their FAIR SHARE!
You underestimate Obama.
So if they force a default, they'll have eat probably 80%-100% losses on investment.
What they can do is slowly ease out of T-Bills. The Fed mainly has to pay only itself back, which they can simply do by rolling over T-Bills.
In essence, the debt held by the Fed will be rolled over eternally.
Only partly true. Yes, the FOMC controls short-term rates, but with past QE practices and the period of 2011-2013, the Fed has attempted to drive down long-term interest rates buy buying long-dated bonds and selling medium terms ones. The Fed has absolutely become the "Central Planner" of the US economy. You can be assured they will try everything to keep long-term rates low as well.
It will be a currency crisis that lays this bare - the point when foreigners (and Americans) don't want to hold US Dollars any longer. Expect capital and travel controls as well as gold/silver confiscation as the US tries to prevent money from leaving the country.
In chess they have a term called Zugzwang; a situation in which no matter what move you make you will be worse off than you are currently. I believe we may be in a Zugzwang now.
It’s why I moved from seattle to central KY in 2011. Every year I am more confident I did the right thing. The evidence of where we are going is overwhelming. And it matters not which party captains the titanic after it has hit the iceberg.
The government buying its own debt is unsustainable.
They have every incentive to keep the game of three-card monte going.
and there u have it!!!....until the fed quits feeding the beasts
It doesn’t mean you can’t retire. It means you can’t retire based on savings.
Your retirement needs to be based on an inflation/deflation adjustable return on investment. For example, rental income turned over to a management company at retirement. Maybe a small business where the day to day is hired out, like washateria or car wash. Or, best example, seek out and buy mineral rights.
Anybody with a six figure 401k and at 59.5 years should be figuring out how to turn a good chunk of that money into ROI income.
The Fed is already doing it, by buying back those bonds with fiat money. That's why QE won't stop, and real inflation will continue.
Doesn’t this theory presume that the folks in charge will be able to control the markets?
And doesn’t every historical instance of fake money eventually turn out badly?
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