Silicon Valley Bank put most of their reserves in US Treasury Bonds. But they still failed when the market value of those Treasury Bonds dropped and the bank suffered a surge in withdrawals.
@jmski52 said “The Fed is the only buyer of longer term US debt now,”
That is totally incorrect (ie, opposite of the current status). For the past two years, the Fed has reduced treasury bond holdings. Although foreign central banks have also decreased holdings, there are some exceptions over the past year (eg, Japan). In the meantime, the private sector, both in the US and abroad, have become net buyers.
(This is easy to verify)
Edited to add: thanks to @cohodk for the useful graphs!
@jmski52 said: Millions and millions of Americans buy US debt every week. As does almost every county on the planet.
What BS. US Treasuries are the biggest ponzi that the world has ever known - and everyone (except coho) knows it.
The Fed is the only buyer of longer term US debt now, and the banks are in trouble because they bought low yield Treasuries for the past 20 years.
Wow!!! You've outdone even yourself. Yet again you've proven you know nothing. Nothing.
You don't have an MBA as it would be impossible to lack such an understanding of markets and the economy.
Here are some charts showing why you are wrong (as usual). I don't expect you to accept these charts as you are blinded by your hatred and contempt, but for those who wish to see....
Debt held by public and private and international is rising, while debt held by FED is declining.
Coho, Goldfinger - what were your majors in college - since you’ve both made it a relevant issue?
Cohodk has, in the past, refused to respond to requests to declare what he does for a living, who he works for, and what position(s) has has in the market. Legitimate financial news organizations require that disclosure from commentators.
Coho, Goldfinger - what were your majors in college - since you’ve both made it a relevant issue?
Cohodk has, in the past, refused to respond to requests to declare what he does for a living, who he works for, and what position(s) has has in the market. Legitimate financial news organizations require that disclosure from commentators.
we are far from legitimate.
The only way to make an economic system truly stable is to permit the free market to take over.
Coho, Goldfinger - what were your majors in college - since you’ve both made it a relevant issue?
Cohodk has, in the past, refused to respond to requests to declare what he does for a living, who he works for, and what position(s) has has in the market. Legitimate financial news organizations require that disclosure from commentators.
Perhaps because it would be none of your business? THKS!
Perhaps because it would be none of your business? THKS!
Do I need to point out the hypocrisy here?
It’s ok for coho and gf to hide behind “it’s none of your business” when making sarcastic and personally-demeaning jabs about my qualifications (which apparently neither one of them can match).
I’m here to talk about PMs and I get personally attacked for sharing my observations and opinions.
So who are the trolls here?
Q: Are You Printing Money? Bernanke: Not Literally
@jmski52 said: Perhaps because it would be none of your business? THKS!
Do I need to point out the hypocrisy here?
It’s ok for coho and gf to hide behind “it’s none of your business” when making sarcastic and personally-demeaning jabs about my qualifications (which apparently neither one of them can match).
I’m here to talk about PMs and I get personally attacked for sharing my observations and opinions.
So who are the trolls here?
I'm just a redneck hillbilly that knows more than you. And I wouldn't want to "match" you. That would be an insult...to me!! Haha
You tout your "credentials". Ive never asked you cuz I don't give a rats... You subscribe to "alternative facts". I don't. Simple as that.
Not trolls, just concerned folk who attempt to keep this place from being an echo chamber prison.
an employee of one of the shops, told the Associated Press that the holiday was contributing to the plunge in the rate, giving only his first name over fear of retribution for speaking about Iran’s economic struggles. The demand for dollars is high because people travel abroad
Not trolls, just concerned folk who attempt to keep this place from being an echo chamber prison.
It's beneficial to have conflicting opinion, even if it's conflicted, but only when the opinion is about the topic at hand and not the person who discussed or presented it.
The only way to make an economic system truly stable is to permit the free market to take over.
I believe in about 10 years; this thread discussion will be very different. Which country, if any single one, has a "reserve currency" is probably going to be less relevant. We are in a goldilocks period where the massive increase in U.S. debt including gov't, public, and private, is still going into an adequate number of productive investments that it overcomes the bad loans and fiscal mismanagement that will eventually become more significant.
History would suggest that a deflationary depression will eventually result when too much borrowing or money printing goes to wasteful projects, insolvent or non-productive businesses or people, or wars where it is literally just blown up.
In this current and future environment, moving a bit higher percentage of earnings and life savings into physical precious metals under your direct control, and out of lower rated banks or speculative stocks, and paying off some credit card debt is a good idea.
Rather than totally replacing the dollar will enough countries move away from it that the result is a significant decrease its value?
The longer I live the more convincing proofs I see of this truth, that God governs in the affairs of men. And if a sparrow cannot fall to the ground without His notice is it possible for an empire to rise without His aid? Benjamin Franklin
@pmh1nic said:
Rather than totally replacing the dollar will enough countries move away from it that the result is a significant decrease its value?
you pretty much defined "loosing world currency status." Only question left would be "what takes over?" I believe China will have a big say in the matter and that gold will be included.
The only way to make an economic system truly stable is to permit the free market to take over.
Not trolls, just concerned folk who attempt to keep this place from being an echo chamber prison.
It's beneficial to have conflicting opinion, even if it's conflicted, but only when the opinion is about the topic at hand and not the person who discussed or presented it.
@derryb said:
Open Market Operations are not "bailouts" -- it's what a central bank does.
printing money and injecting it into the banking system to stimulate lending is a bank bailout. QE is a hidden >central bank subsidy for the banks. As we have learned, QE and the FED's zero interest rate policy resulted in money >supply inflation, asset and consumer goods price inflation, and dollar devaluation.
When the cost of open market operations includes destruction of the currency then it's time for the central bank to >shutter its doors or to find more competent management.
You show no understanding of modern banking or finance. OMO can also be reversed via reverse REPOs as is being done right now. If OMO QE is a subsidy, is tightening a tax ?
The dollar is doing fine. There is no "destruction" of the currency.
Coho, Goldfinger - what were your majors in college - since you’ve both made it a relevant issue?
Cohodk has, in the past, refused to respond to requests to declare what he does for a living, who he works for, and what position(s) has has in the market. Legitimate financial news organizations require that disclosure from commentators.
Perhaps because it would be none of your business? THKS!
.
Cohodk has previously made comments about my business.
If he wants to be taken seriously he should disclose these things.
Otherwise, it is like a talking head that is only here is to put lipstick on the pigs they want to sell.
"China continues to pare its holdings of U.S. Treasurys, arousing market speculations over its motives. The country's stockpile of U.S. government debt hit the lowest level in 14 years at the end of August, with the pace of decline accelerating."
The only way to make an economic system truly stable is to permit the free market to take over.
"China continues to pare its holdings of U.S. Treasurys, arousing market speculations over its motives. The country's stockpile of U.S. government debt hit the lowest level in 14 years at the end of August, with the pace of decline accelerating."
Excellent...can't wait till they have none. More for the rest of us.
"China continues to pare its holdings of U.S. Treasurys, arousing market speculations over its motives. The country's stockpile of U.S. government debt hit the lowest level in 14 years at the end of August, with the pace of decline accelerating."
Excellent...can't wait till they have none. More for the rest of us.
think of it as musical chairs. Early is better than late.
The only way to make an economic system truly stable is to permit the free market to take over.
"China continues to pare its holdings of U.S. Treasurys, arousing market speculations over its motives. The country's stockpile of U.S. government debt hit the lowest level in 14 years at the end of August, with the pace of decline accelerating."
Excellent...can't wait till they have none. More for the rest of us.
think of it as musical chairs. Early is better than late.
Bout time they start using their own dang currency.
Are you smart enough to understand why they are dumping dollars?
Smarter than you.
But yeah, and of course you'll disagree.....but it's because they can manipulate and devalue their own currency.
Besides, they ain't "dumping" dollars. They buy billions every week due to their trade surplus with the US.
However they are converting excess dollar holdings to their own currency to bail out and prop up their economy. Good thing they saved all those dollars as the yuan has declined about 14% vs the dollar over the last decade.
they ain't "dumping" dollars. They buy billions every week due to their trade surplus with the US.
They ain't saving dollars either.
they are converting excess dollar holdings to their own currency to bail out and prop up their economy.
That trade surplus is buying gold. Buying their own currency to bail out and "prop up their economy"................hmmmmm............sound familiar? A race to the bottom.
Problem is, neither central bank is propping up anything. All they do is force more people into debt, Great for bankers, not so great for the debt slaves.
Q: Are You Printing Money? Bernanke: Not Literally
@jmski52 said: they ain't "dumping" dollars. They buy billions every week due to their trade surplus with the US.
They ain't saving dollars either.
they are converting excess dollar holdings to their own currency to bail out and prop up their economy.
That trade surplus is buying gold. Buying their own currency to bail out and "prop up their economy"................hmmmmm............sound familiar? A race to the bottom.
Problem is, neither central bank is propping up anything. All they do is force more people into debt, Great for bankers, not so great for the debt slaves.
Only the weak are "forced" We are weak. Don't be weak.
Comments
China Dumps $74,000,000,000 in US Treasuries in One Year As Two BRICS Nations Say They’ve Abandoned Dollar
The only way to make an economic system truly stable is to permit the free market to take over.
Gold goes higher, yes, but it's nothing to do with U.S. fiscal problems.
lol, of course not. It's all just magic.
I knew it would happen.
They need the money to bail out their economy (see eatlier post). The US dollar saves the day again!!!
Knowledge is the enemy of fear
They need the money to bail out their economy (see eatlier post). The US dollar saves the day again!!!
And then they bought more gold with the proceeds! Can the Fed sell dollars to save the day for the US? Who buys the debt when China doesn't?
Oh, I remember - it's the Fed, playing their usual shell game with the bond market. The bond market that has no buyers.
I knew it would happen.
Millions and millions of Americans buy US debt every week. As does almost every county on the planet.
Who is going to buy China's debt?
China to Start $138 Billion Bond Sale on Friday to Boost Economy https://www.bloomberg.com/news/articles/2024-05-13/china-to-hold-meeting-on-138-billion-ultra-long-debt-sale
Knowledge is the enemy of fear
This comment has absolutely no basis in fact.
Knowledge is the enemy of fear
Silicon Valley Bank put most of their reserves in US Treasury Bonds. But they still failed when the market value of those Treasury Bonds dropped and the bank suffered a surge in withdrawals.
Millions and millions of Americans buy US debt every week. As does almost every county on the planet.
What BS. US Treasuries are the biggest ponzi that the world has ever known - and everyone (except coho) knows it.
The Fed is the only buyer of longer term US debt now, and the banks are in trouble because they bought low yield Treasuries for the past 20 years.
I knew it would happen.
@jmski52 said “The Fed is the only buyer of longer term US debt now,”
That is totally incorrect (ie, opposite of the current status). For the past two years, the Fed has reduced treasury bond holdings. Although foreign central banks have also decreased holdings, there are some exceptions over the past year (eg, Japan). In the meantime, the private sector, both in the US and abroad, have become net buyers.
(This is easy to verify)
Edited to add: thanks to @cohodk for the useful graphs!
Wow!!! You've outdone even yourself. Yet again you've proven you know nothing. Nothing.
You don't have an MBA as it would be impossible to lack such an understanding of markets and the economy.
Here are some charts showing why you are wrong (as usual). I don't expect you to accept these charts as you are blinded by your hatred and contempt, but for those who wish to see....
Debt held by public and private and international is rising, while debt held by FED is declining.
Knowledge is the enemy of fear
You believe what the Fed publishes? Good luck with that!
I knew it would happen.
I see a bunch of FRED charts that show runaway debt. I don't believe that debt "judgement day" will care who is holding it.
The only way to make an economic system truly stable is to permit the free market to take over.
“Private Investors” = Federal Reserve banks
“Foreign & International Investors” = Cayman Islands, Luxembourg, Belgium.
I knew it would happen.
Ok, let’s play.
Coho, Goldfinger - what were your majors in college - since you’ve both made it a relevant issue?
I knew it would happen.
Cohodk has, in the past, refused to respond to requests to declare what he does for a living, who he works for, and what position(s) has has in the market. Legitimate financial news organizations require that disclosure from commentators.
we are far from legitimate.
The only way to make an economic system truly stable is to permit the free market to take over.
Perhaps because it would be none of your business? THKS!
The whole worlds off its rocker, buy Gold™.
Perhaps because it would be none of your business? THKS!
Do I need to point out the hypocrisy here?
It’s ok for coho and gf to hide behind “it’s none of your business” when making sarcastic and personally-demeaning jabs about my qualifications (which apparently neither one of them can match).
I’m here to talk about PMs and I get personally attacked for sharing my observations and opinions.
So who are the trolls here?
I knew it would happen.
I'm just a redneck hillbilly that knows more than you. And I wouldn't want to "match" you. That would be an insult...to me!! Haha
You tout your "credentials". Ive never asked you cuz I don't give a rats... You subscribe to "alternative facts". I don't. Simple as that.
Not trolls, just concerned folk who attempt to keep this place from being an echo chamber prison.
Knowledge is the enemy of fear
Back to topic of BRICS and challengers to the US dollar.....and kinda timely given today news....
https://www.rferl.org/a/iran-currency-record-low-rials-dollars-norouz/32875507.html
This quote is very revealing...
an employee of one of the shops, told the Associated Press that the holiday was contributing to the plunge in the rate, giving only his first name over fear of retribution for speaking about Iran’s economic struggles. The demand for dollars is high because people travel abroad
Knowledge is the enemy of fear
It's beneficial to have conflicting opinion, even if it's conflicted, but only when the opinion is about the topic at hand and not the person who discussed or presented it.
The only way to make an economic system truly stable is to permit the free market to take over.
I believe in about 10 years; this thread discussion will be very different. Which country, if any single one, has a "reserve currency" is probably going to be less relevant. We are in a goldilocks period where the massive increase in U.S. debt including gov't, public, and private, is still going into an adequate number of productive investments that it overcomes the bad loans and fiscal mismanagement that will eventually become more significant.
History would suggest that a deflationary depression will eventually result when too much borrowing or money printing goes to wasteful projects, insolvent or non-productive businesses or people, or wars where it is literally just blown up.
In this current and future environment, moving a bit higher percentage of earnings and life savings into physical precious metals under your direct control, and out of lower rated banks or speculative stocks, and paying off some credit card debt is a good idea.
National Commemorative Medals of the U.S. Mint:
https://www.pcgs.com/setregistry/u-s-coins/medals-tokens/national-commemorative-medals-united-states-mint-1940-present/alltimeset/195526
Rather than totally replacing the dollar will enough countries move away from it that the result is a significant decrease its value?
you pretty much defined "loosing world currency status." Only question left would be "what takes over?" I believe China will have a big say in the matter and that gold will be included.
The only way to make an economic system truly stable is to permit the free market to take over.
Agreed.
Knowledge is the enemy of fear
Only "bailouts" I see are for labor union pensions and OPEBs.
You show no understanding of modern banking or finance. OMO can also be reversed via reverse REPOs as is being done right now. If OMO QE is a subsidy, is tightening a tax ?
The dollar is doing fine. There is no "destruction" of the currency.
Speaking of competence....
.
You write of overt bailouts.
But that is dwarfed by the covert bailouts in the form of banks setting monetary policy to benefit themselves first.
.
.
Cohodk has previously made comments about my business.
If he wants to be taken seriously he should disclose these things.
Otherwise, it is like a talking head that is only here is to put lipstick on the pigs they want to sell.
.
Been to the grocery store lately?
The only way to make an economic system truly stable is to permit the free market to take over.
>
>
>
https://markets.businessinsider.com/news/currencies/dedollarization-dollar-dominance-currency-war-trade-usd-reserves-explained-2024-5#:~:text=De-dollarization is 'a myth,US currency, commodities expert says&text=De-dollarization fears just don,was still in high demand.
Knowledge is the enemy of fear
From coho's link:
"Practically no one is phasing out the dollar for trade or foreign reserves, he said."
The reality:
China is reducing it's holding of US debt.
"China continues to pare its holdings of U.S. Treasurys, arousing market speculations over its motives. The country's stockpile of U.S. government debt hit the lowest level in 14 years at the end of August, with the pace of decline accelerating."
The only way to make an economic system truly stable is to permit the free market to take over.
Excellent...can't wait till they have none. More for the rest of us.
Knowledge is the enemy of fear
think of it as musical chairs. Early is better than late.
The only way to make an economic system truly stable is to permit the free market to take over.
Nah.....last one gets the chair.
Knowledge is the enemy of fear
The only way to make an economic system truly stable is to permit the free market to take over.
Bout time they start using their own dang currency.
Knowledge is the enemy of fear
Are you smart enough to understand why they are dumping dollars?
The only way to make an economic system truly stable is to permit the free market to take over.
Smarter than you.
But yeah, and of course you'll disagree.....but it's because they can manipulate and devalue their own currency.
Besides, they ain't "dumping" dollars. They buy billions every week due to their trade surplus with the US.
However they are converting excess dollar holdings to their own currency to bail out and prop up their economy. Good thing they saved all those dollars as the yuan has declined about 14% vs the dollar over the last decade.
Knowledge is the enemy of fear
dollar might be buying more yuan but it is buying less Spaghetti O's
The only way to make an economic system truly stable is to permit the free market to take over.
It's a good thing wages also increase. My cabinets are stocked full of butter and beanz. THKS!
The whole worlds off its rocker, buy Gold™.
they ain't "dumping" dollars. They buy billions every week due to their trade surplus with the US.
They ain't saving dollars either.
they are converting excess dollar holdings to their own currency to bail out and prop up their economy.
That trade surplus is buying gold. Buying their own currency to bail out and "prop up their economy"................hmmmmm............sound familiar? A race to the bottom.
Problem is, neither central bank is propping up anything. All they do is force more people into debt, Great for bankers, not so great for the debt slaves.
I knew it would happen.
Only the weak are "forced" We are weak. Don't be weak.
Knowledge is the enemy of fear
correct, don't be forced to buy food or shelter.
The only way to make an economic system truly stable is to permit the free market to take over.
Grow your own build your own. Certainly not a new concept. THKS!
The whole worlds off its rocker, buy Gold™.
While we debate how much premium to pay for PMs. Lol.
Knowledge is the enemy of fear
NVDA has a higher market cap than the GDP of Russia.
MSFT is about equal to India.
Facebook is equal to South Africa.
Maybe we should be discussing those companies creating a currency. They might prove more competitive. Lol
Knowledge is the enemy of fear
so, what is over priced and what is under priced?
The only way to make an economic system truly stable is to permit the free market to take over.
Will BRICS replace the dollar as the world 🌎 reserve currency? In a word ....." NO"
.
If anything, those data points indicate that perhaps the stock market (especially "tech" stocks) is way over-priced relative to other things.
Facebook is basically worthless as far as I am concerned.
.