The administration believes in a weaker dollar. They think this will lead to exports growth.
Despite the fact that No country Ever has devalued its way to prosperity.
That's who he works for after all. Israel might get a little pissed when they realize we cannot subsidize their free Healthcare and education anymore but thems the shakes.
just wanna take this opportunity to remind folks of the Internet Research Agency, aka the Russian troll farm, which was responsible for vast amounts of misinformation which directly contributed to the conman-in-chief's first election.
for somebody who constantly whines about election interference, he sure has benefitted from it.
I am not saying what he is doing is a good idea, but several developing economies have purposely held the value of their currency down to grow their economy. China is probably the biggest user of this tool.
But devaluing our currency is nearly impossible if we also maintain reserve currency status.
Trumps personal experience is filing bankruptcy repeatedly as a business strategy to avoid paying his lenders. He’s just applying that philosophy to our entire country in a way.
>The administration believes in a weaker dollar. They think this will lead to exports growth.
Despite the fact that No country Ever has devalued its way to prosperity.
What are you talking about? Devaluing the Yuan is practically China's entire financial strategy. It's how the CCP maintains its edge in the export market, disenfranchises its workers, and suppresses domestic demand.
Their strategy makes more sense when you realize who benefits from the devaluation: the ownership class. They would get to sell more American goods abroad.
It’s the average American who would suffer, as the cheap imported goods we rely on to survive disappear.
I for one can’t believe that paying off your mortgage with your credit card might cause problems. I guess we’ll see what happens and the repercussions.
Sigh, this is exactly what he wants. When they openly say they want to outgrow the debt, they mean doing so by hyper-expanding the money supply, purchasing back excessive debt in lieu of alternative measures. This has happened in every major civilization that has had a central bank or a reserve currency, dating back to Roman times. It's so obvious and has been so for over a decade.
P.S. History does repeat itself!!
English is consistent in being completely inconsistent, so there's no obvious rule which words ending with "-us" get treated as Latin words or as English words adopted from Latin.
Bonus, cactus, colossus, fungus, virus, and so on are all Latin words directly imported into English, yet some get a Latin plural form while the others get an English one, or even both of them at the same time when used in different contexts.
Only partly true though. While they clearly wanted the dollar value to sink, the rates are not in their interest. There is some 1.5 trillion this year again that need roll-over if I am not mistaken and any plan they had to do that cheaply is gone by now.
Nah, history rhymes…the only way empires maintain their control is militarily- because the relative prosperity of its average citizens can’t keep growing indefinitely.
Another nation-state will inevitably want what another has.
We’re in a populist period right now- a lot of citizens are stirred up for one reason or another.
I doubt we’re going to elect someone who makes their message “we should turn the temperature down and stop trying to blame each other for things”, for example.
If we see inflation and people’s jobs get disrupted, I’m not sure it’ll lead to stagflation- it’ll lead to disruption.
Invest in commodities and equities that benefit from inflation, or prepare to see the largest wealth gap in history. Unfortunately
The common folk holding cash will experience pain; how much isn't quantifiable without insider data.
The most common is obviously gold, but I'd recommend oil and precious metals (MP), specifically due to changes in magnet supply. I like uranium and copper, but really there are a lot of solid options; just do your due diligence.
I appreciate the response. I'm a recent home owner and I'm hoping my asset appreciates. I bought largely because I could afford it but also because I felt the dumb ass in charge would hyper inflate assets. Do you think the direction we're going in validates my thoughts? I'm also comfy holding for a long time so it's not the end of the world whenever happens. I just appreciate the insight. Know it's highly variable.
Well, I think this time around it will be a bit more aggressive. Bessent used to work for Soros, he knows that the real money can be made in shorting a government. But with Thiel and Musk in the wings they're not going to stop ar a black Wednesday. Go bust or go home!
Well that is why it's always better to invest most of your money into something other than cash. You lose money by simply keeping money in a savings account.
Commodities and equities that benefit from inflationary environments. I would even avoid TIPS with the current bond yield curve. Hedging is also a profitable play depending on your knowledge and experience with derivatives.
Only if you believe that Bitcoin has value and will hold value (I do versus printed dollars) STRF has several benefits :
1). It has the first call on distributions as the most senior preferred
2). It is cumulative so in the case that Bitcoin falls very far down in value and dividends have to be suspended (analysts see below $20k btc before this happens) - the unpaid dividends accumulate and in fact are ratcheted up for the time value. You will get your payment plus time value. Again btc would have to fall a Lot for this to even occur.
3). STRF distributions are classified as Returns of Capital for tax purposes, not regular income. So your dividends are taxed Far below the regular income tax rates of other fixed income.
So your tax equivalent dividend yield is in the teens.
For those that hate Bitcoin there’s no need to send hate messages. This post is for the rest of us.
This administration wants to destroy the dollar. Trump literally just got his cryptocurrency/bank a week ago? Thats why all the data centers are going up. It’s for infrastructure of cryptocurrency, surveillance, AI security etc. project 2025 literally talks about destroying the dollar and the fed. It even talks about killing horses on BLM land which is happening now.
Might work on the masses but I have no interest in a 20-year old made up currency that could end up crumbling when quantum computing breaks it. Give me the physical metals that humanity has cherished and valued for thousands of years
Um please read project 2025 and Curtis Yarvin. They are trying to make sure we don’t have another democratic election—ever. Despite his age, Trump is already talking about his “next term”.
And yeah the horse stuff is so freaking sad. It’s all over my social media feeds. The videos had me crying.
Yup. I can’t imagine anyone wanting to be the person to pick up the reins. IF we are somehow to right this ship through reduced spending and raising taxes, that person will only be in office for 1 term.
After Chase tagged Trump accounts for money laundering, his own bank was the best way to get around the law. DOJ is never going to prosecute, much less ever investigate
Good time to read about the roots of this movement if people are interested: https://washingtonspectator.org/paranoia-on-parade/ Audio form at the bottom. tl;dr It's a long-standing class warfare from crazy rich people against eveyone else.
Why are we letting these clowns destroy all of our futures? Is this recoverable? Should I buy a lot of stuff now because inflation is about to fuck is all in the ass with no lube? How can a country destroy itself this thoroughly, like shouldn’t there be uprisings? This isn’t a joke of a country fundamentally. Why would Republicans and even rich people let this happen? Can no one stand up to Trump?
LMAO. All you goofballs do is whine online about why aren't there uprisings while looking hopefully at each other and can't see the obvious. Fucking hilarious.
>
Why are we letting these clowns destroy all of our futures?
Because we were Uncommitted to our democracy in the 2024 election. Do you remember all of the anti genocide protestors occupying college campuses? They destroyed Kamala’s chance and really helped Trump. Now, they’re getting deported and Israel hasn’t stopped the genocide.
95%+ of the population has no idea what's going on here or its implications. That's part of the problem with knowledge specialization in the modern world. There's a ton going on with the economy, data privacy, defacto circumvention of the 4th amendment and a ton of other things that the public just isn't aware of or well enough educated to understand it.
That's why in theory we have elected representatives to watch this stuff and weigh in when things get out of pocket but they aren't going to do anything about it either. Most of the GOP is too scared of getting bullied by the president online to say or do anything that might upset him and hope that they can just implement some Christian nationalist utopia before this all falls apart. Most of the Democrats are still deluded into thinking that this will all somehow be a positive thing because they'll do better in the polls and people will finally given them the 20+ years need to implement their game plan and completely forgetting what happened the last time Trump lost an election.
Lots of congress can see the fuse burning and could fix the problem tomorrow if they had consensus and courage to do so, they just don't. Most disaster don't result from a single point of failure but a bunch of missed opportunities and a culture that discourages safety and preemptive action. Unfortunately our government is no different.
I know that releasing 4Bn into the economy isn’t a big deal, but wouldn’t this technically lead to more inflation in the short term (assuming they aren’t issuing new debt to fund the buy back)?
I guess more importantly it will lead to the expectation that this will happen again and again. Everytime the thirty year yield spikes, they have set the precedent. The global money supply will continue expanding and expanding.
Actuall it’s for the entire quarter with 4 operations per quarter so the amount is around 14 billion. Year to date they already bought a record 138 billion as of today.💰
I believe they’re buying one end to decrease the other. Short vs long term bonds basically putting out fires. We have operating bond issuance in 4 sales per quarter. .25 cents of every dollar we borrow goes to interest payments so our real interest rate is 25% plus the amount of the bond.
Doesn't this assume that Bessent wants to maintain the value of the dollar? What if the real play all along is drastically devaluing the dollar? That makes US exports much more attractive and devalues the massive US debt burden.
Say the USD loses 25-40% of its value relative to the Euro, CDN, Yuan, Yen, etc. That might be really bad for the American economy as a whole, particularly in terms of inflation, but on the other hand it would accomplish three of their known objectives of making US exports drastically more competitive on the global stage, putting an unofficial 'tariff' on all imports, and reducing the burden of US debt by devaluing it relative to all other currencies.
And the US has long accused other countries of purposefully devaluing their own currencies in order to gain such advantages over the US; from their perspective, this is just turnabout being fair play. I too am curious to see how this works out, but I hold out the possibility that maybe Bessent does have a plan, it's just not what they say publicly, it's to devalue the USD on purpose.
The goal of this government is to straight up just impoverish the average American. There is literally no other logical or rational explanation for their actions at this point.
Trump is doing exactly what he's been groomed recruited to do by the Russian government and China since the 80's. At first it was a massive money laundering operation and then that became an opportunity to bribe politicians and judges while the Russian government offered the muscle for the credible threats for anyone who doesn't take the bribe.
The credible threat component is why nobody has broken ranks and exposed the RICO operation
When the donor class starts to feel the pain (i.e., the actual big businesses that run Congress), expect impeachment proceedings to take place and Senators actually warn Trump that he is at risk of being convicted in the Senate. Only then will Trump back down and pull out of Iran, etc.
Thé dollar devaluation is the goal. It’s the only lever they can use to get out of this situation. It’s not a risk so much as a final outcome that needs guidance in getting there carefully. That’s bessents challenge.
The only other levers are worse like raising taxes, austerity or defaulting. I don’t think any other person in his situation would be doing things much differently
Any dollar weakness is coming from Trump pissing literally everybody off and putting tariffs on everyone (remember that money would normally go to those bond buyers since they don't buy much from the US because they can't afford to). Nothing to do with these buybacks.
Well, duh, He's a Republican. While adept at failure across all disciplines, screwing up the economy is a particular specialty of theirs. We've seen it for decades at this point.
Always_Curious_One2 | 6 hours ago
The administration believes in a weaker dollar. They think this will lead to exports growth.
Despite the fact that No country Ever has devalued its way to prosperity.
B0xGhost | 6 hours ago
After pissing off people with tariffs , what countries would want to do business with us ?
MikeOKurias | 4 hours ago
Russia, obvs. ^/s
That's who he works for after all. Israel might get a little pissed when they realize we cannot subsidize their free Healthcare and education anymore but thems the shakes.
ccbmtg | 3 minutes ago
just wanna take this opportunity to remind folks of the Internet Research Agency, aka the Russian troll farm, which was responsible for vast amounts of misinformation which directly contributed to the conman-in-chief's first election.
for somebody who constantly whines about election interference, he sure has benefitted from it.
Alone_Hunt1621 | 5 hours ago
Roman Empire speed run
Microtom_ | 5 hours ago
It increases the numerical value of the stock market. That's a win for someone.
gotnotendies | 4 hours ago
lol they don’t care about the country, they just want to be rich enough to never face any consequences for anything
ThePensiveE | 5 hours ago
Fascism consumes by it's nature. It does not grow because it's focus is subtraction and extraction.
HornedShoe | 4 hours ago
It's not about American prosperity. It's about billionaire prosperity.
TenderfootGungi | 3 hours ago
I am not saying what he is doing is a good idea, but several developing economies have purposely held the value of their currency down to grow their economy. China is probably the biggest user of this tool.
But devaluing our currency is nearly impossible if we also maintain reserve currency status.
VerdantField | 2 hours ago
Trumps personal experience is filing bankruptcy repeatedly as a business strategy to avoid paying his lenders. He’s just applying that philosophy to our entire country in a way.
Thestoryteller987 | 2 hours ago
>The administration believes in a weaker dollar. They think this will lead to exports growth.
Despite the fact that No country Ever has devalued its way to prosperity.
What are you talking about? Devaluing the Yuan is practically China's entire financial strategy. It's how the CCP maintains its edge in the export market, disenfranchises its workers, and suppresses domestic demand.
absentgl | 2 hours ago
Their strategy makes more sense when you realize who benefits from the devaluation: the ownership class. They would get to sell more American goods abroad.
It’s the average American who would suffer, as the cheap imported goods we rely on to survive disappear.
KeepTheGoodLife | 6 hours ago
I am curious, isnt this what China did?
Wonderful-Lab7375 | 5 hours ago
China’s economy relies on exports. The US, not as much. Not to mention the dollar is also the world’s main currency for trade + reserve currency.
duofuzz | 6 hours ago
Is one thing when you’re uplifting hundreds of millions of peasants out of poverty, and another when you are already the world’s center of innovation.
LTNBFU | 5 hours ago
Yeah, when they were at the bottom.
Nervous-Present-6890 | 4 hours ago
No, the Yuan has constantly strengthened vs the dollar.
devliegende | 4 hours ago
I believe the UK grew faster directly after the famous Soros incident
dragon3301 | 4 hours ago
Japan, china
Choice-Ad7599 | 4 hours ago
The administration believes in a weaker dollar because Putin wants that (for real though, Google “Project Russia”).
trogdor1234 | 6 hours ago
I for one can’t believe that paying off your mortgage with your credit card might cause problems. I guess we’ll see what happens and the repercussions.
B0xGhost | 6 hours ago
We can always send in the military haha
HeyUKidsGetOffMyLine | 4 hours ago
Nuke it like a hurricane!
m_sobol | 4 hours ago
If a B2 bomber drops a JDAM bomb on your credit card statement, the balance goes away, right?
Bravefan212 | 2 hours ago
As long as you’re holding the statement at the time
heruskael | 3 hours ago
"He didn't say that." "He didn't mean it like that." "Wow you're just over reacting." "Why would Obama do this."
UpstairsCheetah235 | 4 hours ago
Yeah cause Iran is going amazing. World is shaking in their boots.
elbow8075 | 5 hours ago
[ Removed by Reddit ]
glory_holelujah | 9 minutes ago
But think of the points you could get!
For fr. As someone who buys everything with a cc and pays it all off for the points, I would love to be able to add the mortgage.
Diamond1africa | 6 hours ago
Sigh, this is exactly what he wants. When they openly say they want to outgrow the debt, they mean doing so by hyper-expanding the money supply, purchasing back excessive debt in lieu of alternative measures. This has happened in every major civilization that has had a central bank or a reserve currency, dating back to Roman times. It's so obvious and has been so for over a decade. P.S. History does repeat itself!!
Horatio2200 | 6 hours ago
Theyve been paying us diluted silver deneriuses for years now.
wirthmore | 6 hours ago
Linguistic nerdery: "denarius" is a Latin word, so the plural is "denarii".
English words ending in "us" don't get that treatment.
Horatio2200 | 6 hours ago
Ha ha I knew what I wrote was probably wrong but thanks for the education. I genuinely am interested
anythingbuttaken | 6 hours ago
There’s others that enjoy learning this stuff too. Thanks !
jp_in_nj | 6 hours ago
Thanks for saving me from being the pedantic one on the internet today
kirime | 5 hours ago
English is consistent in being completely inconsistent, so there's no obvious rule which words ending with "-us" get treated as Latin words or as English words adopted from Latin.
Bonus, cactus, colossus, fungus, virus, and so on are all Latin words directly imported into English, yet some get a Latin plural form while the others get an English one, or even both of them at the same time when used in different contexts.
Diamond1africa | 6 hours ago
Haha exactly except without the silver 😆
uncoolcentral | 4 hours ago
Thank you. This puts a very fine point on what I was going to pedantically retort re OC.
Rolandersec | 6 hours ago
Look at how well it worked for all those South American countries in the 80s and 90s.
toolkitxx | 6 hours ago
Only partly true though. While they clearly wanted the dollar value to sink, the rates are not in their interest. There is some 1.5 trillion this year again that need roll-over if I am not mistaken and any plan they had to do that cheaply is gone by now.
JC_Hysteria | 6 hours ago
Nah, history rhymes…the only way empires maintain their control is militarily- because the relative prosperity of its average citizens can’t keep growing indefinitely.
Another nation-state will inevitably want what another has.
Diamond1africa | 6 hours ago
Solid point power projection is a huge factor, hence why there's a direct cause/effect correlation with debt crises and world wars
JC_Hysteria | 6 hours ago
We’re in a populist period right now- a lot of citizens are stirred up for one reason or another.
I doubt we’re going to elect someone who makes their message “we should turn the temperature down and stop trying to blame each other for things”, for example.
If we see inflation and people’s jobs get disrupted, I’m not sure it’ll lead to stagflation- it’ll lead to disruption.
FrankRizzo319 | 6 hours ago
And so what does this mean for common folk?
Diamond1africa | 6 hours ago
Invest in commodities and equities that benefit from inflation, or prepare to see the largest wealth gap in history. Unfortunately The common folk holding cash will experience pain; how much isn't quantifiable without insider data.
Fractales | 6 hours ago
Which commodities benefit the most from inflation?
Diamond1africa | 6 hours ago
The most common is obviously gold, but I'd recommend oil and precious metals (MP), specifically due to changes in magnet supply. I like uranium and copper, but really there are a lot of solid options; just do your due diligence.
pattydickens | 2 hours ago
I love these hot takes from people who obviously don't understand poverty. "Just invest in commodities". Motherfucker, I can't even afford gas.
OhGr8WhatNow | 6 hours ago
Not uranium. The price never changes. It's just hype
ThrasymachianJustice | 4 hours ago
> Not uranium. The price never changes. It's just hype
shouldn't over time uranium reduce to half of its initial value?
deanremix | 2 hours ago
I appreciate the response. I'm a recent home owner and I'm hoping my asset appreciates. I bought largely because I could afford it but also because I felt the dumb ass in charge would hyper inflate assets. Do you think the direction we're going in validates my thoughts? I'm also comfy holding for a long time so it's not the end of the world whenever happens. I just appreciate the insight. Know it's highly variable.
panna__cotta | 6 hours ago
Ding ding ding
j909m | 4 hours ago
It means you should buy some gold.
Spinoza42 | 6 hours ago
Well, I think this time around it will be a bit more aggressive. Bessent used to work for Soros, he knows that the real money can be made in shorting a government. But with Thiel and Musk in the wings they're not going to stop ar a black Wednesday. Go bust or go home!
Osama-bin-sexy | 6 hours ago
Break this down for me if you would. How would this scheme work?
Misfiring | 4 hours ago
Well that is why it's always better to invest most of your money into something other than cash. You lose money by simply keeping money in a savings account.
Dazzling-Rub-8550 | 23 minutes ago
Weimar German vibes. Around when Drumpf’s great grandfather left.
Alone_Hunt1621 | 5 hours ago
Speed run. Just make more!
Medical-Button-5493 | 6 hours ago
So what is the save investment here?
Diamond1africa | 6 hours ago
Commodities and equities that benefit from inflationary environments. I would even avoid TIPS with the current bond yield curve. Hedging is also a profitable play depending on your knowledge and experience with derivatives.
Zachincool | 6 hours ago
guns
Always_Curious_One2 | 6 hours ago
Only if you believe that Bitcoin has value and will hold value (I do versus printed dollars) STRF has several benefits :
1). It has the first call on distributions as the most senior preferred
2). It is cumulative so in the case that Bitcoin falls very far down in value and dividends have to be suspended (analysts see below $20k btc before this happens) - the unpaid dividends accumulate and in fact are ratcheted up for the time value. You will get your payment plus time value. Again btc would have to fall a Lot for this to even occur.
3). STRF distributions are classified as Returns of Capital for tax purposes, not regular income. So your dividends are taxed Far below the regular income tax rates of other fixed income.
So your tax equivalent dividend yield is in the teens.
For those that hate Bitcoin there’s no need to send hate messages. This post is for the rest of us.
Medical-Button-5493 | 5 hours ago
Ok but I'll just buy BTC
Isthatamole1 | 6 hours ago
This administration wants to destroy the dollar. Trump literally just got his cryptocurrency/bank a week ago? Thats why all the data centers are going up. It’s for infrastructure of cryptocurrency, surveillance, AI security etc. project 2025 literally talks about destroying the dollar and the fed. It even talks about killing horses on BLM land which is happening now.
Financial-Barnacle79 | 6 hours ago
Yeah,’with all these crypto bros hanging around this administration, no doubt they’d love to have their currency replace the $.
Horatio2200 | 6 hours ago
Wondering if there's a plan to pump bitcoin to distract the masses from buying gold, silver and oil.
Financial-Barnacle79 | 6 hours ago
Put on your conspiracy hat now because anything seems plausible be these days.
The_Frozen_Inferno | 2 hours ago
Might work on the masses but I have no interest in a 20-year old made up currency that could end up crumbling when quantum computing breaks it. Give me the physical metals that humanity has cherished and valued for thousands of years
Isthatamole1 | 6 hours ago
💯
Dphre | 6 hours ago
The horses too? Damn.
What’s crazier is that all of this will immediately become the next presidents fault, not this administration.
Isthatamole1 | 6 hours ago
Um please read project 2025 and Curtis Yarvin. They are trying to make sure we don’t have another democratic election—ever. Despite his age, Trump is already talking about his “next term”.
And yeah the horse stuff is so freaking sad. It’s all over my social media feeds. The videos had me crying.
Richandler | 3 hours ago
Read the history of it all. They've been attempting this stuff for a long time. https://washingtonspectator.org/paranoia-on-parade/
Financial-Barnacle79 | 6 hours ago
Yup. I can’t imagine anyone wanting to be the person to pick up the reins. IF we are somehow to right this ship through reduced spending and raising taxes, that person will only be in office for 1 term.
OkIron6206 | 6 hours ago
This 💯
sweatboxy | 6 hours ago
After Chase tagged Trump accounts for money laundering, his own bank was the best way to get around the law. DOJ is never going to prosecute, much less ever investigate
Spinoza42 | 6 hours ago
Dollar must go and so must democracy or nation states. They're blowing it all up!
Richandler | 3 hours ago
Good time to read about the roots of this movement if people are interested: https://washingtonspectator.org/paranoia-on-parade/ Audio form at the bottom. tl;dr It's a long-standing class warfare from crazy rich people against eveyone else.
WellHung67 | 5 hours ago
Why are we letting these clowns destroy all of our futures? Is this recoverable? Should I buy a lot of stuff now because inflation is about to fuck is all in the ass with no lube? How can a country destroy itself this thoroughly, like shouldn’t there be uprisings? This isn’t a joke of a country fundamentally. Why would Republicans and even rich people let this happen? Can no one stand up to Trump?
9783883890272 | 4 hours ago
> like shouldn’t there be uprisings?
LMAO. All you goofballs do is whine online about why aren't there uprisings while looking hopefully at each other and can't see the obvious. Fucking hilarious.
WellHung67 | 3 hours ago
What’s the obvious?
dust4ngel | 2 hours ago
the real move is to talk shit on reddit
Apocalypsis_velox | 4 hours ago
Unlubed ass-fuckings will continue until morale improves
Original-Rush139 | 3 hours ago
> Why are we letting these clowns destroy all of our futures?
Because we were Uncommitted to our democracy in the 2024 election. Do you remember all of the anti genocide protestors occupying college campuses? They destroyed Kamala’s chance and really helped Trump. Now, they’re getting deported and Israel hasn’t stopped the genocide.
WellHung67 | 3 hours ago
I would say there’s lots of blame to go around for the 2024 election
ObservationalHumor | 28 minutes ago
95%+ of the population has no idea what's going on here or its implications. That's part of the problem with knowledge specialization in the modern world. There's a ton going on with the economy, data privacy, defacto circumvention of the 4th amendment and a ton of other things that the public just isn't aware of or well enough educated to understand it.
That's why in theory we have elected representatives to watch this stuff and weigh in when things get out of pocket but they aren't going to do anything about it either. Most of the GOP is too scared of getting bullied by the president online to say or do anything that might upset him and hope that they can just implement some Christian nationalist utopia before this all falls apart. Most of the Democrats are still deluded into thinking that this will all somehow be a positive thing because they'll do better in the polls and people will finally given them the 20+ years need to implement their game plan and completely forgetting what happened the last time Trump lost an election.
Lots of congress can see the fuse burning and could fix the problem tomorrow if they had consensus and courage to do so, they just don't. Most disaster don't result from a single point of failure but a bunch of missed opportunities and a culture that discourages safety and preemptive action. Unfortunately our government is no different.
King-Meister | 6 hours ago
I know that releasing 4Bn into the economy isn’t a big deal, but wouldn’t this technically lead to more inflation in the short term (assuming they aren’t issuing new debt to fund the buy back)?
Horatio2200 | 6 hours ago
I guess more importantly it will lead to the expectation that this will happen again and again. Everytime the thirty year yield spikes, they have set the precedent. The global money supply will continue expanding and expanding.
brainrotbro | 6 hours ago
More so I think he’s signaling that the treasury is ready and willing to prop up treasuries in order to prevent major offloading.
Stock-Ad-7486 | 6 hours ago
Actuall it’s for the entire quarter with 4 operations per quarter so the amount is around 14 billion. Year to date they already bought a record 138 billion as of today.💰
King-Meister | 5 hours ago
I am assuming a lot of it was done against issuance of new debt?
Stock-Ad-7486 | 4 hours ago
I believe they’re buying one end to decrease the other. Short vs long term bonds basically putting out fires. We have operating bond issuance in 4 sales per quarter. .25 cents of every dollar we borrow goes to interest payments so our real interest rate is 25% plus the amount of the bond.
King-Meister | 4 hours ago
If that's the case then is it not a feedback loop?
Stock-Ad-7486 | 3 hours ago
Well yes
ResolveLeather | 5 hours ago
No. It will increase bond rates which increases the cost of money. That usually slows inflation.
King-Meister | 5 hours ago
Wait, isn't the treasury buyback supposed to reduce bond yields so that the cost of borrowing for the government doesn't increase a lot?
ResolveLeather | 5 hours ago
My bad, you are right. I was thinking of the consequences of not doing it.
King-Meister | 4 hours ago
No worries.
Hautamaki | 5 hours ago
Doesn't this assume that Bessent wants to maintain the value of the dollar? What if the real play all along is drastically devaluing the dollar? That makes US exports much more attractive and devalues the massive US debt burden.
Say the USD loses 25-40% of its value relative to the Euro, CDN, Yuan, Yen, etc. That might be really bad for the American economy as a whole, particularly in terms of inflation, but on the other hand it would accomplish three of their known objectives of making US exports drastically more competitive on the global stage, putting an unofficial 'tariff' on all imports, and reducing the burden of US debt by devaluing it relative to all other currencies.
And the US has long accused other countries of purposefully devaluing their own currencies in order to gain such advantages over the US; from their perspective, this is just turnabout being fair play. I too am curious to see how this works out, but I hold out the possibility that maybe Bessent does have a plan, it's just not what they say publicly, it's to devalue the USD on purpose.
Nervous-Present-6890 | 4 hours ago
not gonna happen. other countries are all pegged or soft pegged to the dollar
Hautamaki | 4 hours ago
meaning they're all stuck in the car as Bessent drives it off a cliff?
sjbglobal | an hour ago
Not really
argentpurple | 3 hours ago
The goal of this government is to straight up just impoverish the average American. There is literally no other logical or rational explanation for their actions at this point.
PhilMyu | 6 hours ago
When do we come to terms with the fact that this monetary system isn‘t sustainable.
(This said, it’s clearly the unnecessary Iran war that is putting oil to the fire and Trump and his cronies are too stupid and proud to admit it.)
NicoBeingAModelCitiz | 5 hours ago
when the majority of the population can't buy food with the dollar at its face value.
wastingtoomuchthyme | 4 hours ago
Trump is doing exactly what he's been groomed recruited to do by the Russian government and China since the 80's. At first it was a massive money laundering operation and then that became an opportunity to bribe politicians and judges while the Russian government offered the muscle for the credible threats for anyone who doesn't take the bribe.
The credible threat component is why nobody has broken ranks and exposed the RICO operation
Defiant_Wolf5934 | 2 hours ago
When the donor class starts to feel the pain (i.e., the actual big businesses that run Congress), expect impeachment proceedings to take place and Senators actually warn Trump that he is at risk of being convicted in the Senate. Only then will Trump back down and pull out of Iran, etc.
pig_newton1 | 3 hours ago
Thé dollar devaluation is the goal. It’s the only lever they can use to get out of this situation. It’s not a risk so much as a final outcome that needs guidance in getting there carefully. That’s bessents challenge.
The only other levers are worse like raising taxes, austerity or defaulting. I don’t think any other person in his situation would be doing things much differently
vertigo3pc | 29 minutes ago
>The only other levers are worse like raising taxes...
>I don’t think any other person in his situation would be doing things much differently
So you think the reasonable thing to do, which is what Bessent is doing, which is NOT raising taxes? You think that's what markets want to see?
Richandler | 3 hours ago
Any dollar weakness is coming from Trump pissing literally everybody off and putting tariffs on everyone (remember that money would normally go to those bond buyers since they don't buy much from the US because they can't afford to). Nothing to do with these buybacks.
Memitim | 42 minutes ago
Well, duh, He's a Republican. While adept at failure across all disciplines, screwing up the economy is a particular specialty of theirs. We've seen it for decades at this point.
Chill--Cosby | 38 minutes ago
Guys what happens to us? What happens to the lives we are living now if this happens?
I want to go to grad school. Is this going to ruin everything for us?