On 2019 the system broke at 2.5%, but now we expect the fed to raise to 7-8%?
On 2019 the system broke at 2.5%, but now we expect the fed to raise to 7-8%?
Owen Davis
Xavier Peterson
>we expect the fed to raise to 7-8%
huh?
Jose Watson
bump
James Perez
no we dont
Josiah Martin
>7-8%
No. Also who is
>(((we)))
Leo Phillips
Absolutely nobody expects this, the US government will become insolvent
Henry Cooper
They won't do shit us defaults at 5% and they can't let the meme that rate hikes are helping fight inflation go on because people will demand the hikes if that happens.
Everyone thinks the us defaults at 12% but they forget that tax rates will go down and gibs up as rates are rising.
it's worse than what everyone thinks by a large margin.
Julian Jones
that's a man
Kevin Smith
Fed is the biggest scam in the world, literally more ppl dying, will die because of the fed than in the ww2
Nolan Long
Yeah especially during stagflation where govt interest increases and tax base decreases.
Lincoln Cox
The fed can just continue buying treasury bonds at the same time as they raise interest rates.
Eli Brooks
System so called broke because of covid-19 not interest rate hikes. Im betting that rates peak at 10%
Kevin Bennett
Which is why they will try to murder the stock market and cause massive layoffs to go full scorched earth on demand bc they know they can raise that high.
Juan Thompson
>rate hikes are fucking MOOONING
Brayden Edwards
What does this table show? The percentage of tax yields needed to service sovereign debt?
Joshua Martinez
It already is. People will just start noticing.
Jackson Lee
Yes US debt.
Yeah I mean there’s no other way to service the deficit debt and obligations. If the fed stops buying treasuries from the treasury then the us will default. The treasury will also default if rates get so high that they service the debt entirely through treasury sales
Juan Stewart
>Yes US debt.
where do you get these numbers from?
Sebastian Morris
if it's broken completely at 2.5% then you can go all the way beyond that without any additional effect. shit's already broken. then everyone who has been saving money will earn a good return on it, which they can invest, and you bet your ass they'll be more careful investors than you bunch of fags running around wasting your money chasing "making it" with fucking fake internet "coins"
Jayden Thompson
completely misses the point. the rates go up, the bonds are very attractive. the fed doesn't get first crack at them, the markets do, and they will get sucked up by the rest of the world. why the fuck would you risk your money for a 3% return from a shithole when the united fucking states is guaranteeing you a 5% return? and the stock markets in your country are collapsing?
the problem is, the US government can't just up and do that. it can't afford to pay 5% notes. it would actually go broke, instead of pretending it isn't broke.
Jace Wilson
I expect it
The fed is REACTIONARY not ANTICIPATORY your crypto is going to ZEROOOO
Andrew Gonzalez
You retards do understand that higher FED rates = lower bond yields = more cheap debt for the US Federal Government right?
FED will keep raising rates past 10%. With a debt at 120% of GDP its amazing the US hasnt defaulted already with bond yields at 3%.
Noah Powell
>implying anyone but the fed would buy bonds at negative real rates
Just take the current debt and determine the payment and put it over the tax base. It’s all public info on gov websites
Noah Garcia
>higher rates mean cheaper debt servicing
Retarded and arrogant. Higher rates means the price of bonds go down not the
Daniel Parker
Yes dumb dumb
Lower yield on the bonds = Washington D.C. has to pay less interest on the money they yoink as debt hence the bonds are worth less.