Posted on 08/25/2024 8:34:14 PM PDT by RomanSoldier19
Long touted as hands-down the world's "safe haven" securities, the behavior of U.S. Treasuries during and after the COVID-19 pandemic calls that label into question, suggesting they are little different from the debt issued by the likes of Germany, Britain, France, or even big corporations.
That's the key finding of new research presented at the Kansas City Fed's annual research conference in Jackson Hole, Wyoming. It examines a shift in investor behavior in that period that raises questions about the "exorbitant privilege" the U.S. government has long enjoyed to borrow broadly on the global market even as federal budget gaps grow ever wider.
(Excerpt) Read more at inc.com ...
Okay, but what takes its place??
we have the best crappiest money in the world. It is relative.
I want to say that Burl Ives is right. But if you have to barter a silver coin for a loaf of bread, good luck keeping that bread from the armed and hungry men standing off to your side.
Bottom line: Trump or bust.
Do not try to “time” this market.
The data center boom is on. Money shifted.
I’m looking forward to the short-term T-Bills increasing their interest rates.
https://www.treasurydirect.gov/
If the global economies reject the dollar you will have to back the dollar with some form of commodity. I would think our reserves of petroleum would work, tie the dollar to the price of oil and gas..
At some point the dollar will become worthless, and every day we are getting nearer to that point, which is no longer unfathomably distant. Moreover, investing in government debt props up that government, funding it. You’d think conservatives would find alternatives to funding a government that hates them and wants to destroy their culture and society.
The 4 Week Treasury has been paying 5.3% - 5.6% (annually) for the last 15 months.
It is still paying 5.36% as I write this, almost twice the inflation rate - or, should I say the alleged inflation rate?
Anyway, investment grade bonds rarely pay more than a couple points above inflation.
I remember when the 3 Month Treasury hit 15.6% (annually) around 1980. That was only 3% above the inflation rate at the time.
I have a lot of ammo. Probably far more than I could use in a couple of lifetimes. I always thought that I could barter some of that if the SHTF.
“Okay, but what takes its place??”
Nothing.
Chaos theory rules—until a new empire rises.
Would YOU invest in a government’s future that promotes child killing beyond replacement numbers, lets in foreigners of morals unknown, teaches its young to hate the very fundamentals that kept it going to today, bans anyobe of moral ethics from entering the military, sends the DOJ, FBI, and even CIA to destabilize their own people and leaders.....what fool invester would?
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