Warning: Bond rates are going negative

CNN Money ^ | 15 January 2015 | Matt Egan

[o2bfree]

Follow up question. In that situation where *should* folks be putting their cash?

[Alberta's Child]

In a deflationary cycle the best place to put the cash is in your mattress (metaphorically speaking). If prices and values fall, then your cash will be worth more (in terms of purchasing power) tomorrow than it is today.

This is all a hypothetical discussion, of course. The government of this country will go to whatever lengths necessary to prevent this type of scenario. Many of the government policies that prevail under both Democratic and Republican leadership are aimed precisely at warding off a deflationary cycle here in the U.S. Two policies in particular that fit this description -- "open borders" and "free trade" -- are perfect examples of this.

[central_va]

Two policies in particular that fit this description -- "open borders" and "free trade" -- are perfect examples of this.

I don't think free trade and open borders helps deflation. LOL. If anything they decrease prices and wages. A double bagger deflator.

[dragnet2]

This is solid evidence that the very wealthy in the know realize the house of cards is about to fall.

I think they've known it for a long time.

[Alberta's Child]

The purpose of open borders is to increase demand for products and services by bringing more "customers" here into the U.S.

The purpose of free trade is to prop up the value of the U.S. dollar by increasing the number of businesses and customers around the globe who use the dollar for conducting business.

[central_va]

The purpose of open borders is to increase demand for products and services by bringing more "customers" here into the U.S.

They dilute the labor pool lowering wages. This is deflationary.

The purpose of free trade is to prop up the value of the U.S. dollar by increasing the number of businesses and customers around the globe who use the dollar for conducting business.

We save a few pennies on the dollar on imported retail prices. This is deflationary too.

[jyro]

PGP 11+% a year -— pays monthly. Sells at a market premium of +50% of nav but it has for the last 10 years.

[jyro]

https://investments.pimco.com/Products/pages/678.aspx

PGP

[Alberta's Child]

They dilute the labor pool lowering wages. This is deflationary.

No, it's not. If I have 10 employees earning $20/hour and I replace them with 50 employees earning $5/hour, my employees now have an extra $50/hour in purchasing power.

We save a few pennies on the dollar on imported retail prices. This is deflationary too.

And we purchase more products at the lower prices than we did at the higher prices. People living below the poverty line in the U.S. today have a better standard of living than someone in the middle class did even as recently as 25-30 years ago.

[central_va]

So we dilute their wages and off shore their jobs but they are better off? I believe you are what I call a Free traitor. Good evening.

[dragnet2]

The purpose of open borders is to increase TAXES and they do that by bringing more “customers” here into the U.S.

[VerySadAmerican]

There used to be negative amortization mortgages. You could pay on it for ten years and end up owing more than when you started. They were outlawed after the S&L crises in the early 90s.

It was a beeeatch. People couldn’t refinance ‘cause their homes didn’t appraise for what they owned on it.

[dragnet2]

To clarify;

The purpose of open borders is to increase TAX REVENUE and they do that by bringing more “customers” here into the U.S.

[billys kid]

Thanks!

[GeronL]

buy a bond and lose money... that oughtta sell a lot of bonds, lol

[Alberta's Child]

I didn’t say it was a good idea. I’m saying that’s how it works.

[Alberta's Child]

That’s part of it ... because government is one of the “industries” that constantly needs more customers.

[dragnet2]

Part of it?

Get real...

[Alberta's Child]

I can assure you that the U.S. Chamber of Commerce doesn’t give a flying crap about tax revenue when they spend millions of dollars lobbying in Washington for open borders.

[dragnet2]

Horseshit...Screw the chamber of commerce...A bunch of over paid corrupt AHs on the tax teet. Nothing more. It's all about dividing the united, more tax revenue and whatever works for their private borderless global dreams of total control. Bringing in an endless conga-line of illegals by the tens of millions, is only propping up the corrupt tent for a bit longer. Make um legal? LOL...Thats just to get um registered to pay more taaaaxes. Even if it takes 5 illegals to match what 1 middle American used to make in old America.

I hope this wasn't too insensitive.