Bond market is flashing warning: Raise interest ra
Post# of 123743
(Total Views: 175)
Posted On: 06/15/2022 3:42:09 PM
Bond market is flashing warning: Raise interest rates or we’ll do it for you
https://nypost.com/2022/06/13/bond-market-war...t-for-you/
Bond traders = Free market
Fed = Gov control/minipulation
#Fed
#interest
#rate
#bond
#inflation
https://nypost.com/2022/06/13/bond-market-war...t-for-you/
Quote:
But the Fed is not the only game in town controlling interest rates. Bond traders do as well, by trading so-called fix income investments that are highly sensitive to inflation.
When inflation spikes, bonds and the interest payments they deliver, as well as principal they pay at some date in the future, are worth less.
Thus their prices fall and their yields spike— investors demand more for their risk of inflation eating returns. That drives up interest rates on everything. The US economy contracts as consumers stop spending on homes (already we’re seeing mortgage rates increase) and other stuff; businesses borrow less to expand because it’s more expensive. Unemployment rises and you get a pretty deep recession.
You would rather have the Fed controlling interest rates than the bond market. The government can try to take it slow, whereas the bond market is agnostic to the suffering of the American people.
Bond traders = Free market
Fed = Gov control/minipulation
#Fed
#interest
#rate
#bond
#inflation
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U.S. Constitution
"The Preamble
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"The Preamble
We the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defence, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution for the United States of America."
Oath
"I solemnly swear to support and defend the Constitution of the United States of America"
The Flag
"I pledge allegiance to the flag of the United States of America, and to the republic for which it stands, one nation under God, indivisible, with liberty and justice for all."
Quote:
If the broker-dealer fails to deliver for 13 days, the regulation imposes a “close out” duty to purchase and deliver securities “of like kind and quantity.”
https://www.bloomberg.com/opinion/articles/20...ify%20wall
https://www.scotusblog.com/case-files/cases/m...v-manning/
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