I don't suppose you have a source that proves your $1 trillion figure?
Here's mine.
Looks like over $3 trillion.
Posted on 02/23/2006 11:18:59 AM PST by tmp02
Your CD's will be earning 5.5% by this time next year...
And everybody was wondering why I sold 50% of my stocks last month..........
"The market has seen the life sucked out of implied volatility levels across the board, with at-the-money June straddles pricing options (that expire in 92 days, which is over 3-months...nothing can happen in 3-months) in 5-yr futures at 2.8%, 10-yrs at 4.1% & 30-yrs at 6.8% as of the open today. The 2-yrs? Too depressing to mention (ahem, sub 2%). Bloomberg, using a different measure, points out that there has been a 20% drop in the past 2-weeks in expected yield range on treasuries over the next 12 months. They go on to point out that that is the lowest level of expected volatility since 1998...just before Russia defaulted on $40B in bonds, Long Term Capital was twisted by $4B in losses on interest rate trades & 10-yrs screamed higher on safe-haven buying, knocking yields off 1.0%in under 2-months." (Feb 23, 2006)
IOW, traders are not pricing much of a risk premium into the bond markets. Bonds have been trading in a narrow range for so long that everyone yawns. The last time this happened to such an extent it preceded a huge movement in the price of bonds. Last time the move was up..., this time - maybe up, maybe down maybe nothing.
good information...thanks for that post...
Don't you see, they keep the CPI down, hence they keep interest rates down so they do not have to pay higher interest rates on their own debt!!! What would their interest payments be on national debt obligations if the interest rate was 10% or more?
Hmmmm, wonder if my bank would object if I used my own interest rate calculations? "Biff sets prime interest rate at 1% so I will pay you prime plus 1 for a new car loan".
"Only 10% of our economy produces anything? Where did you get that from?"
Federal numbers. 10% is in manufacturing of good, with an additional 9% producing energy, and the remaining 81% service sector.
Unfortunately, most people working in the corporate world know little of economics. They see a paycheck and think everything is fine. Few know or understand where that paycheck comes from. I've worked many years in corporate America only to see that few people provide anything to the bottom line. Most people shuffle paper or "manage". When China has the ability to sell and distribute their own goods without us, how many people will have a job remaining?
"We manufacture more than the GDP of every nation on Earth except Japan.
"
Not true. The GDP of the US includes only 10%, or $1T, in the manufacture of goods. China, alone, matches that.
"this inflation business is no joke if you are saving up to retire someday."
Dead right. We are about to see a whole bunch in the baby-boom generation squeel loud as they see their tiny savings eaten up by taxes alone. We pay more in property taxes today than most people paid in mortgage to own their homes in the first place. Case in point is my in-laws. They paid $230/month mortgage when they were paying off their home but now pay $250/month in property taxes.
I don't suppose you have a source that proves your $1 trillion figure?
Here's mine.
Looks like over $3 trillion.
"Correct me if I'm wrong but isn't inflation caused by the Fed printing money? "
That and the pesky prime rate they lend on the money they print. For very dollar they print they also get to loan, IIRC, 7 at the prime rate. All three actors, printing money, over lending, and that rate, contribute to the inflationary rate. Ever notice that the prime rate and the rate of inflation are usually about the same?
For every deposit to the federal reserve a bank also gets to loan 10.
I'm afraid to ask where you got this info.
Ever notice that the prime rate and the rate of inflation are usually about the same?
Not even close. Do you know why it's called the Prime Rate?
"That and the pesky prime rate they lend on the money they print. For very dollar they print they also get to loan, IIRC, 7 at the prime rate. "
"I'm afraid to ask where you got this info. "
Are you saying that isn't true? Lay it one the line, guy, is it or isn't it true the fed loans a ratio against the printed dollar?
hey Todd!
all you do is ask everyone where they got their info.
You must spend all day watching CNBC. The stuff you are questioning is VERY basic.
Lurking'
Hmmmmm....why would I ask for a real source? No one on FR ever posts incorrect info.
The stuff you are questioning is VERY basic.
Are you saying you agree with this?
For very dollar they print they also get to loan, IIRC, 7 at the prime rate.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.