Negative Yielding Debt

[errolanderson]

Does Greece still exist today?
So does it really matter if the any debt can be serviced or not?
Personal or sovereign or foreign?

I know I am in way over my head in this thread. Fire away.

Worst debt to GDP countries (believe this current order).

1. Japan
2. Greece
3. Sudan
4. Venezuela
5. Lebanon
6. Portugal
7. Italy
8. U.S.A.

farmaholic . . . does debt matter and need to be serviced? . . . yes. We will all have a reality check and find out why (IMO). It will severely cost the next generation . . . our kids and their kids.

[biglentil]

Does Greece still exist today?
So does it really matter if the any debt can be serviced or not?
Personal or sovereign or foreign?

I know I am in way over my head in this thread. Fire away.

Thats modern monetary theory, that we can have our cake and eat it to. Its a free lunch. But debts are always repaid either by the borrower or the lender.

[errolanderson]

Negative debt intrest ? does that mean they will pay me to take thier money??

yup . . . .

[macdon02]

Does Greece still exist today?
So does it really matter if the any debt can be serviced or not?
Personal or sovereign or foreign?

I know I am in way over my head in this thread. Fire away.

It's a good point, it's all relative. There's a distinction between govt debt and private. When govt can't borrow, taxes go up. I think it's safe to say if the US govt can't borrow, Canada will be in the same boat. Errol are you bullish or bearish USD? Where do you see the $ going if there's a loss of confidence in bonds? Powell is still letting repurchased debt expire, whereas Draghi isn't, he's rolling it. Fwiw there's talk of a "peg" in rates on govt bonds while letting private bonds float. The CB's are in a corner and Powell will cut here imo. We are closer to the 30s then 1980s here. There's certain relationships that are believed to be true by traders, ie gold(commods) up dollar down, dollar up euro(&rest of the basket)down, gold up yen down, We are on the cusp of this all getting shredded imo). We are in a short period where buying anything is a win. Especially if your home currency is not USD

[bucket]

Thats the modern monetary theory, that we can have our cake and eat it to. Its a free lunch. But debts are always repaid either by the borrower or the lender.

Anyone think ILTA grain will pay their debts????

I am thinking farmers will be paid by other farmers checkoffs to the CGC....and FCC/HSBC will take a haircut...

[AlbertaFarmer5]

Thats modern monetary theory, that we can have our cake and eat it to. Its a free lunch. But debts are always repaid either by the borrower or the lender.

When it is a mathematical impossibility that the borrower can ever pay, The only other possibility is it will be the lender.

To Put it all into perspective, For how many decades have we been hearing about on sustainable deficit and debt levels, We have kept all of the balls in the air all this Time, Life goes on. When it does finally all blow up, It won't matter which side you're on anyways. But living life in fear of the impending economic collapse has been a poor business practice almost forever...

[errolanderson]

Negative yielding debt globally will continue to expand rapidly (IMO). Even U.S. bonds could turn negative as their debt to GDP nudges closer to Greek status. This is the beginning of the shrinking of the money supply bubble and massive write-downs. QE no longer has any impact and in my opinion has just made the economics of money worse. Realize this is not central bank and mainstream thinking.

But the health of the U.S. is being held together by the ongoing flow of global funds into American equities. This is now a parking lot for money. Valuations are now insane. The stock market is the poster child for the U.S. gov’t. If it goes, they go. It is critical, it holds. Tariffs have been quite ineffective, in my opinion.

[jazz]

Errol I will give you a little tip. The fed and CBs will be neutered under Trump and the US will return to a partial gold standard within about 5 yrs. Real assets will rise in accordance. I would personally be out of notes and stocks when that happens. The US will still rise to the top of the new economic system and leave the rest in the dust.

[errolanderson]

Errol I will give you a little tip. The fed and CBs will be neutered under Trump and the US will return to a partial gold standard within about 5 yrs. Real assets will rise in accordance. I would personally be out of notes and stocks when that happens. The US will still rise to the top of the new economic system and leave the rest in the dust.

Jazz . . . Hope you are right, but the path currently taken doesn’t point there.

[tmyrfield]

Negative debt intrest ? does that mean they will pay me to take thier money??

Nope...It means that you have to pay someone to hold your money in a savings account. which unfortunately is at a time when commodities and real goods are deflating so in effect is less damaging.