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To: Rarebird who wrote (108472)	4/5/2018 7:31:48 PM
From: Real Man	Read Replies (1) \| Respond to of 116836

I mentioned just the yield curve. It is like talking about Chinese yuan appreciating against the dollar when their policy was to fix exchange rates. Our policy is to fix interest rates. On the short side of course. The long side can still tank theoretically, but I emphasize theoretically. It won’t in practice. It tanked now because the Fed is raising the short end.

To: Rarebird who wrote (108472)	4/5/2018 7:36:03 PM
From: Real Man	Read Replies (1) \| Respond to of 116836

We supposedly manage the economy based on these reports. The question is, can you manage the economy well based on cooked reports? My tentative answer is, likely no. So, it benefits nobody. It just seems there was a tendency to run cooked reports, primarily to devalue social security. However, they can’t devalue Medicare that easily cause it has costs pegged to real inflation. Not sure what the purpose of fake reporting is. Bubble markets? Wrong too. It is just one of the components that pushes markets further away from reality. Modern day theory of btfdippers is that alignment with reality never comes, the Fed never allows it. LOL. Guess America is a country under God immune from economic law.

To: Rarebird who wrote (108472)	4/10/2018 7:26:45 AM
From: RetiredNow	Read Replies (1) \| Respond to of 116836

China has already stopped buying Treasuries. That is a shot across the bow. My guess is that China is afraid to roil the US Treasury market too much. If they did, then they'd be shooting themselves in the foot, because their sovereign wealth and reserves are tied to the price of Treasuries and their economy is levered up to the hilt. A far better tactic that they could use, and I suspect they will, is a program of Yuan devaluation, which will make their goods even more competitive and act as a dumping mechanism, exporting deflation to the rest of the world, especially the US. That sucks for us, because our Fed is trying desperately to get to 2% inflation and keep it there with only moderate success. With a new wave of deflation from China, they'd have to slow down the rate increases and QT, which would keep their posture deformed and make them unprepared for the next recession. The Fed's options are narrowing. A trade war with China will absolutely have consequences on both sides. It's like the old Cold War nuclear M.A.D. scenario between Russia and the US, but this one is an economic one.