Negative Yielding Debt

[errolanderson]

U.S. 10-year treasury yields appear headed to 0 percent.

Markets are caught in a deflationary debt trap (IMO). And central bankers are now just realizing that inflation cannot be generated through Keynesian policy. Deflation is the risk that central banks cannot control. It is coming in fast and central bankers appear panicked and now cutting rates in-unison.

How this cannot impact stock markets soon is beyond my comprehension.

[AlbertaFarmer5]

U.S. 10-year treasury yields appear headed to 0 percent.

Markets are caught in a deflationary debt trap (IMO). And central bankers are now just realizing that inflation cannot be generated through Keynesian policy. Deflation is the risk that central banks cannot control. It is coming in fast and central bankers appear panicked and now cutting rates in-unison.

How this cannot impact stock markets soon is beyond my comprehension.

It already is affecting stock markets. That is most of the reason they are so high. And likely will continue to defy gravity and pundits best wishes.

[Ache4Acres]

There is zero chance of deflationary anything. Inflation is truly rampant and will only accelerate as the rates drop and the printing machines are cranked higher. Economies are doomed for the next 20 years as the baby boomers are done having fun and now just sit home watching reruns of I love Lucy.

Debts will always be paid by the borrower when you control the printing press.

U.S. 10-year treasury yields appear headed to 0 percent.

Markets are caught in a deflationary debt trap (IMO). And central bankers are now just realizing that inflation cannot be generated through Keynesian policy. Deflation is the risk that central banks cannot control. It is coming in fast and central bankers appear panicked and now cutting rates in-unison.

How this cannot impact stock markets soon is beyond my comprehension.

[biglentil]

There is zero chance of deflationary anything. Inflation is truly rampant and will only accelerate as the rates drop and the printing machines are cranked higher. Economies are doomed for the next 20 years as the baby boomers are done having fun and now just sit home watching reruns of I love Lucy.

Debts will always be paid by the borrower when you control the printing press.

Debts will ultimately be paid by the savers and pensioners that see their purchasing power constantly eroded by inflation

[farmaholic]

Debts will ultimately be paid by the savers and pensioners that see their purchasing power constantly eroded by inflation

I think we are already going down that path. I thought I would be further along than I am by now in my retirement savings....not that I haven't and won't continue to put anything away....just crappy growth in my opinion.

I wonder if there was ever a poorer time in history to be a saver. I suppose there was but maybe only attributed to war. This has been an economic cluster**** as far as I'm concerned. Economic policy....

[jazz]

Surprised by the lack of economic knowledge here. The USA is nowhere near the likes of Greece and Japan. The US has hundreds of trillions of dollars of real assets to back a currency. The US govt alone has a $100T in assets. They could pay the debt off tomorrow if they wanted.

What we are moving toward is resource asset backed currency and we know who the winners will be in that new world.

[errolanderson]

Surprised by the lack of economic knowledge here. The USA is nowhere near the likes of Greece and Japan. The US has hundreds of trillions of dollars of real assets to back a currency. The US govt alone has a $100T in assets. They could pay the debt off tomorrow if they wanted.

What we are moving toward is resource asset backed currency and we know who the winners will be in that new world.

??? . . .

[jazz]

??? . . .

http://business.time.com/2013/02/05/the-federal-governments-128-trillion-stockpile-the-answer-to-our-debt-problems/ The Federal Government’s $128 Trillion Stockpile

[errolanderson]

U.S. Fed cut their key lending rate 1/4% at noon MDT today, the first cut since 2008. This cut was expected by the market, but no spark for inflation and no fix for their sagging economy (IMO).

More economic fallout ahead . . . .

[biglentil]

U.S. Fed cut their key lending rate 1/4% at noon MDT today, the first cut since 2008. This cut was expected by the market, but no spark for inflation and no fix for their sagging economy (IMO).

More economic fallout ahead . . . .

1st rate cut since 2008, Powell flip flops between hawkish and dovish in same speech. A real shit show.