2026 TeoTwawKi ... 2032 Darkest Interregnum Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum

GLD 387.19

-0.7%

Dec 2 4:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

Recommended by:

bruiser98

To: TobagoJack who wrote (149718)	7/18/2019 5:53:41 PM
From: bull_dozer	1 Recommendation of 218147

Comment by dustinthewind : zerohedge.com You have to understand what Williams is really trying to do. There are trillions and trillions of dollar denominated loans made to foreign entities and governments especially emerging markets. These have become increasingly difficult to service because of dollar strength weakening other currencies and increasing servicing costs. Wall street is loaded with these and they want a much weaker dollar hoping that rate cuts will do this and this is nothing more than a wall street bailout. Now because Bernanke left rates too low for too long and destroyed savors, retirees, many pensions and almost all public pensions including social security as they must hold this crap with SS at 100% in treasuries and there has been not enough yield to cover the outflows even if they were fully funded. SS yield in 2018 was only 2.8% and then need 8% to remotely break even and with yields so low for years now rates would have to rise much higher to bring yield back where they are solvent again. This is why the FED started to raise rates back in late 2015 to save US pensions but the global events outside the US has forced Powell to pause. It gets worse as the ECB, the IMF and the banks in the EU also are desperate to have a weaker dollar as banks there invested in emerging markets when Draghi went to negative rates charging banks to park capital and they were forced to go find higher yields which now are all going south due to dollar strength. The whole planet need a much weaker dollar but the FED does not want to cut rates unless they are forced to because they have seen what zero and negative rates has done to Europe and Japan. Investors have fled and both must print to buy the sovereign debt or these countries default and rates go skyhigh collapsing everything faster than it is already. It gets worse as banks also must buy this crap in the EU as part of their reserves and they cannot sell it and get too low of a yield to make a difference and with collapsing emerging markets are all in trouble as Draghi has not only destroyed the bond markets there but banks and whole economies. Just to add icing on the cake pensions there must also buy this crap and of course with no yield cuts are coming just as they are in the US unless yield is brought back which is highly unlikely. Austria just sold 1 billion euros of 100 year old bonds at 1.2% and after bidding for this crap pushed yields into negative territory and it will take these pensions 44 years just o break even and with inflation they will go under. So you have the ECB, central banks in each EU country, banks and pensions buying sovereign debt to prop up governments so they will not collapse and default and the ECB cannot raise rates to get itself out of this mess and likely will also fail when the euro finally collapses starting in 2020 which has been since 2011. Again when Powell was ask last week if the economy is strong and employment is growing why are cuts coming and his response was "It is because events outside the US" which the above is exactly what he was speaking of. Again all of this is why Powell has been reluctant to cut and been using dovish language in an attempt to weaken the dollar without changing monetary policy due to pensions and the risk of investors fleeing and the government cannot fund itself just like countries in Europe and Japan which are now forced to just print which will not last and the collapse then comes. If Powell is forced to cut this means the pensions are going to go bust and already we have been seeing state and local governments raises taxes on everything all to fund pensions and the free healthcare it brings. Some states are just making up taxes like California placing a tax on water, NJ on storm water run off and Oregon trying to pass a climate change tax. Congress will be forced to raise payroll taxes significantly SS and medicare which will reduce disposable income, lower living standards and reduce economic growth. Sanders is out there today address students on medicare for all. Where is he going to pay for all this? By raising taxes even more! The dems want a wealth tax but this will only cause capital to flee the US just as it has been fleeing Europe since 2011 and that place is ready to blow!

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next