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250 sats \ 7 replies \ @siggy47 13 Nov 2023 \ on: Meta Econ Takeover Day 27 meta
I remember that fact being used by pundits before this tightening cycle as an argument that the fed would never raise rates. I guess they were attributing too much foresight to ole Jay and his buddies. Not that the alternative would have been any better. There were no solutions at that point anyway.
It might explain why they kept rates so low for so long, but eventually they had to contend with inflation. They do seem to be stuck between a rock and a hard place.
I've been expecting a targeted default for a while now. These global wars seem like as good of a pretext as anything to take the moral high ground and cease payments to the bad guys.
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Possibly. How do you see it playing out if it happens? China still holds a hell of a lot of treasuries, even though that number goes down each month. Who else?
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China's the main party I'm thinking of. It just seems like they need to get creative, because there's no way to continue financing this debt and there's no will to reduce debt accumulation. Maybe that just doesn't get them far enough to be worth the fallout, plus it's a one-off remedy.
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I still wouldn't rule it out. Desperate times call for desperate measures. I know there are people who believe the Whitney Webb theory that there will be a false flag cyber attack on the international banking system that causes a complete reset, but that seems way too far fetched to me. Then again, I still have trouble believing the covid lockdowns happened.
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I agree on both counts. What seems more realistic to me is some financial regulation that requires pension funds and university trusts to hold a large share of their portfolios in treasuries. I'm sure there are other seemingly mundane strategies that can be rolled out.
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Yes. Very realistic and it would take some pressure off.
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Then they could start doing shady stuff like increasing retirement age and means testing, in order to keep more of the funds locked up.
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