Home Forums Hunting & Shooting Hunter's Campfire Is there a Bond market problem?

The entire financial system is built on debt, and there's some interesting headlines recently. Anyone dialed in on what's taking place?

Been watching this storm brew for a while. Checkout this for a rough idea of the problem. Long story short, I’ll be central banks don’t have the balls to tell the feds and other big countries to stop taking on debt. Inflation will get worse.

https://www.zerohedge.com/markets/calling-feds-bluff-they-are-holding-losing-hand

Yes there’s a debt problem in several forms. At low rates lots of people financed with debt. Rolling that over at higher rates creates defaults as debt payments are fixed obligations whereas dividends are not. People and businesses just cannot afford the new payments. Second as the Fed unwinds it’s valance sheet the increase in rates reduces stock and bond prices not to mention real estate values and considerable wealth is destroyed which destroys consumer balance sheets. The other related issue is as Congress and President keep running expansionary fiscal policy spending g money freely it makes the Federal Resesrve’s job even tougher trying to reign in inflation which means interest rates have to go even higher exacerbating the problems I mentioned at the beginning.

Damned Fed could have headed this off with a few minor rate hikes starting several years back
.25 basis four or five times over a couple of years.

Same problem as the equities markets, the Gov't, won't get out of the way.

Might have only kicked the can a little further down the road.

Don't worry. Biden is sending more billions to Ukraine this week.

Getting rates up slowly and sooner would have helped the current situation greatly.
JPOW wanted to be reinstated so he wouldn't do it a year back.
Of course there is also the .GOV spending that must be reeled in as well.

I see the bank of England just purchased over 65 billion in bonds yesterday . More quantitative Easing just like the US. The US market shot up yesterday. Many countries are going to hurt with the dollar value increasing with inflation getting out of control

Look at the market today, specifically apple, the darling of the us stock market after what the BOE dd yesterday


Clowns running the US and global economy.

Still up from its June lows.

Yes there is ..

Keeping the eYe on the Ball ..

Debt Servicing is the Real Canary ..

That’s the Feds Balance Sheet all the way down to the Kitchen Table ..

The Fed pays 6 Money Center Banks Millions a Day in Interest for them to park their Unused Cash at the Windows..

As rates go Higher so Does the Flame ..

We’re getting close to 52 Card Pick Up where the Fed say Sorry My Bad ..

Gawd Damm the Pusher Man ..

appl was supposed to be immune now from major market fluctuations according to the experts like many stocks that at or near their 52 week lows. . Look at long term trend. We're not in a real recovery as they want to lead you to believe

Democrat policies drive the Fed's moves.
History repeats itself.

Oh, of course we're not.

The federal budget can has come to the end of the road. The pain is just beginning. The debt is completely unsustainable at just a couple percent higher interest and the only way to tame inflation is to raise rates. Inflation wrecks the economy or higher rates wrecks the economy. The bottom line of the problem is the federal debt forces a bad choice. Of course there is a third way out. Balance the federal budget and open the energy taps. Cheap energy combined with a balanced budget would halt the inflation. That’s not going to happen because basically all discretionary spending would have to end or social security would have to end. No military spending , road spending , no everything. That would also wreck the economy. Absurd levels of government debt spending has painted the country into a corner. Dedollarization is really happening and all that money is going to be coming home over the next few years.
The solution that we’re pursuing is WWIII. Destroy civilization and kill 6 out of 7 people on earth. It’s the stated goal of WEF and our western governments are apparently controlled by the WEF.

good explanation.

Subscribed. Thanks for posting, Ribka. Nobody Special Finance, lol.

He's a great resource for novices in investing . Much better than Bloomberg, WSJ