Indeed you have. 50+ response, (and it's still early), and all of them are challenging the author's take on the issue. Even so, I've yet to see one reply explain, if the real rate of inflation is 7%, 8%, 10%, or more, why the 10-year treasury is still yielding less than 2%, and has been for a long time now.
Housing/Owner's Equivalent Rent comprises a large portion of the CPI, and I don't know how that has impacted others on the forum. For me, I recently refinanced my home from 5.5% to 3.5%, which is saving me more $500 a month. So, thanks to the bond yields being driven lower by low inflation, my housing costs have dropped significantly.
“Even so, I’ve yet to see one reply explain, if the real rate of inflation is 7%, 8%, 10%, or more, why the 10-year treasury is still yielding less than 2%”
Because we are borrowing a trillion and a half a year, and the fed buys the overwhelming majority of the magic money.
Without the constant QE, the government would need to raise that money from investors, and rates would skyrocket.
With enough fans on the ground, you could make a 747 appear to float like a Harrier. But it isnt “flying”. When the fans of QE stop as they eventually must, the 747 will smash down hard.
Already our currency is funny money. The Russians, Indians and Chinese are already talking about only accepting payment in a gold backed trade currency. You want oil, gas, products? Convert your dollars into their gold and pay. The Arabs want to, but are holding a ton of Dollars and are riding the tiger for now.
But when the world has largely decided we are untrustworthy, and soon, reserve status of the Dollar will be gone.
BTW,,the Germans just announced they are removing all the gold they had stored in New York.
“Even so, I’ve yet to see one reply explain, if the real rate of inflation is 7%, 8%, 10%, or more, why the 10-year treasury is still yielding less than 2%”
Because we are borrowing a trillion and a half a year, and the fed buys the overwhelming majority of the magic money the create out of thin air.
Without the constant QE, the government would need to raise that money from investors, and rates would have to reflect market rates.
With enough fans on the ground, you could make a 747 appear to float like a Harrier. But it isnt “flying”. When the fans of QE stop, as they eventually must, the 747 will smash down hard.
Already our currency is regarded as funny money. The Russians, Indians and Chinese are already talking about creating a gold backed trade currency. You want oil, gas, or manufactured products? Convert your dollars into their gold currency and pay. The Arabs want to, but are holding a ton of Dollars and are riding the tiger for now.
But the world has largely decided we are untrustworthy, and soon, reserve status of the Dollar will be gone. Happened once to the Pound Sterling, and now it’s happening to us.
BTW,,the Germans just announced they are removing all the gold they had stored in New York.