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84 sats \ 101 replies \ @Satosora 7 May 2024 \ on: US Treasury issues 125 billion dollars worth of new bonds this week econ
Wow
You start wondering when peoole are going to open their eyes and stop buying them.
Then shit will hit the fan.
They'll just start forcing people to buy them, in that case.
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There were talks about doing something called “baby bonds” where each child would get a bond from the government and then couldn’t touch it till they turned like 18 and I could see that being a “fantastic” way to offload them on the population… idea seemed to have died once the House flipped in 2022 but before it was talked about quite a bit on the hill
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oh my god is that really true? when I was little in Germany, the so-called 'Sparkasse' gave everyone who started school a savings bond with 5 Deutschmarks inside.
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The idea was based off of some other country I think in Europe. I will see if I can find who it was that was a huge proponent of it.
Ah found a link turns out it was reintroduced this Congress as well
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Wow they would be able to offload a bunch.
I bet they would be worth almost the same amount after 18 years.
That certificate wouldnt be able to keep up with inflation.
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Here is the most recent version of the bill…. $1k at birth
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Who has 1k to buy that when they are having a kid?
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I’m not sure it’s really a cost since it’s the federal government giving it and they would be off ramping bonds I believe
Fed printer go brrr.
Thanks
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That's diabolical. I assumed they would put financial requirements on things like pension funds and university trusts that would require them to hold some proportion of US treasuries.
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To be honest I am not sure… I think they could be something that take care of the issue and they wouldn’t need to do that however I could see government pensions being another big off ramp for these bonds as well
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Could they do that?
Actually, arent they using social security to prop things up?
I think the government has borrowed from it time and time again.
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The social security trust was a fiction to begin with, but even so, it's been in the negative for several years now.
If they got really desperate, they could do a bail-in for themselves and convert people's savings into treasuries.
The one certainty is that they will do something to prop up demand for US debt.
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Is that cheating though?
Buying your own bonds, it will just bring the value of the US dollar down even faster.
How would they even enact it?
Give each parent a debt of 1000$?
That would hurt a lot, considering how much a baby costs!
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It isnt a debt! It is $1k set aside for the kid and they get it when they turn 18 it doesn't cost the parents anything!
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They dont just give out free money.
There is no such thing as a free lunch.
There are lots of options, but one that comes to mind is that they could make it a refundable tax credit. That would basically let people buy bonds instead of paying taxes.
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Would that actually work?
I would buy the bond and sell them right away, because they are worthless.
Waiting for them to mature is a losing proposition.
Exactly, and then the minimum reserve regulations will be relaxed, sovereign wealth funds and banks will be forced, as you say, to take this junk onto their balance sheets and we will have opened up yet another pond for this slurry.
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We don't have minimum reserve requirements in the US anymore.
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I know, but there is a minimal quota in the eurosystem left. That will be killed soon
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There was shockingly little coverage when they were removed it a few years ago.
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They dont want the people to know that they are manipulating the money to zero.
the readership of the general media is so financially illiterate that our leading media could basically report on it in detail and there would be no consequences.
How is Sweden doing?
They have that oil fund, why cant they take away from that?
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