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To: BiglyCommentary
All good points, but the underlying numbers still don't make any sense.

The 8% inflation rate is "today."

The SHORT TERM U.S. Treasury yields are less than 0.4% (one month), 0.8% (two month), and 1.25% (six month). Someone is losing a ton of real money on these things.

71 posted on 04/18/2022 8:21:27 AM PDT by Alberta's Child ("Mr. Potato Head ... Mr. Potato Head! Back doors are not secrets.")
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To: Alberta's Child

You are comparing price increases to monetary inflation. If your rent is going up 25% in one year, are you “losing money” on an investment just because it will only gain 20% during that time? Do you not investment in something if it will not cover the price increase of a new car next year, stock goes up 6% with new cad goes up 12%?


72 posted on 04/18/2022 9:02:53 AM PDT by BiglyCommentary
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To: Alberta's Child

Your assumption drawn out to it’s logical conclusion is that all the traders and portfolio managers are dim witts and do not know how to properly price the inveztments they buy and sell. They control the yields on bills, notes, and bonds, not the FED.


74 posted on 04/18/2022 9:20:18 AM PDT by BiglyCommentary
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