American Economics Thread

[voyager1]

I am curious to see how the US treasuries will fare next week(this Monday) when a truckload of bonds will go for sale.

Are investors going to pick them up or will the FED be forced to print even more than it is currently doing.

I think the recent unexpected high infation producers results from China will scare the markets and they will refuse buying these bonds with such a low yield. So I am expecting the yields to go up by a lot

 

[quantumlight]

I am curious to see how the US treasuries will fare next week when a truckload of bonds will go for sale.

Are investors going to pick them up or will the FED be forced to print even more than it is currently doing.

I think the recent unexpected high infation producers results from China will scare the markets and they will refuse buying these bonds with such a low yield. So I am expecting the yields to go up by a lot

Could cause a runaway situation.... that wouldnt end well..

What the root cause of China inflation?

 

[voyager1]

Could cause a runaway situation.... that wouldnt end well..

What the root cause of China inflation?

Yep, China is very worried that the US printing will export inflation and cause asset bubbles in China. The property market in T1 cities in China is already bonkers but if a truckload of free cash flows there, then RIP to the young people

Also, the stock market, fortunately the PBoC has sent strong signals from months ago that there is danger and the stock market got the message and has naturally come down from its previous record highs. However there is still danger and China must be extremely careful with the American's toilet paler currency

Xi is probably kicking himself for opening the capital markets the same period when the US is exporting inflation lol

 

[voyager1]

What the root cause of China inflation?

The root cause is all this printing of dollars has caused free money to flow into commodities and thus increasing their prices (e.g copper, iron, gold, coal, lumber etc). So with all these material prices increased, when China imports them to make advanced goods the Chinese manufactorers have to pay more money to make these goods and thus they have to increase their prices, to retain their profit margins, to sell them to customers.

This increased price on the advanced goods is what causing this inflation. And when the rest of the world buys from China then they have to pay more money, so they get inflation too lol

 

[quantumlight]

The root cause is all this printing of dollars has caused free money to flow into commodities and thus increaseing their prices (e.g copper, iron, gold, coal, lumber etc). So with all these material prices increased, when China imports them to make advanced goods the Chinese manufactorers have to pay more money to make these goods and thus they have to increase their prices, to retain their profit margins, to sell them to customers.

This increased price on the advanced goods is what causing this inflation. And when the rest of the world buys from China then they have to pay more money, so they get inflation too lol

So basically what you are saying is the US took advantage of the covid "crisis" to do the great harvesting of China and that of the world through inflation export and weaponizing its dollar privelege....

Between semiconductor shortage, inflation of commodity, supply chain distruption and death of Moores Law...and decrease of global EROEI, this might be the decade of tech stagnation

 

[horse]

Could cause a runaway situation.... that wouldnt end well..

What the root cause of China inflation?

Probably Jerome Powell at the Fed with his printing press machine! The best in the world!

Actually, I still believe in a debt deflation type of scenario for the economy, however asset prices probably continue upward.

It is sort of like what they say about a "V" style recovery, but the recovery in America will be a "K" style recovery.

It could be possible that there is asset inflation for one group of people and there is debt deflation for another set of people.

It is kind of weird. On a related note, oppression has never been easier! Oppression works. I strongly feel they will do the UBI to alleviate the oppression. LOL!

Needless to say, the class struggle will continue. Fight the power! And where is the UBI?

 

[quantumlight]

Probably Jerome Powell at the Fed with his printing press machine! The best in the world!

Actually, I still believe in a debt deflation type of scenario for the economy, however asset prices probably continue upward.

It is sort of like what they say about a "V" style recovery, but the recovery in America will be a "K" style recovery.

It could be possible that there is asset inflation for one group of people and there is debt deflation for another set of people.

It is kind of weird. On a related note, oppression has never been easier! Oppression works. I strongly feel they will do the UBI to alleviate the oppression. LOL!

Needless to say, the class struggle will continue. Fight the power! And where is the UBI?

UBI is already here for some... I do about 15 minutes of real work per day and just collect my paycheck

Most people in America just drive to work to show up and then drive back home after work... with covid they dont even have to fake the driving part anymore...

In my company it feels like no one is working and its all just a show

 

[voyager1]

So basically what you are saying is the US took advantage of the covid "crisis" to do the great harvesting of China and the world through inflation export and weaponizing its dollar privelege....

Exactly. The Americans are taking the piss and the rest of the world is sick and tired from their shenanigans. Their fancy think-tanks might not say this, but the time a currency becomes a viable contender against dollar they will drop the dollar in a heartbeat.

The issue is that the dollar is now tied to selling oil (petrodollar), and that the rest of the currencies are not suitable. The Euro cant do it because the EU is garbage (again) and can never manage to handle a crisis properly.
The Yen by the Japanese lol keep printing, the British Pound (small economy) and the RMB backed by China is impossible because it is not fully convertible to the markets (China is concerned about capital outflows).

The US is ready to bankrupt the world if it means that it can wash away its problems.

I said it before, time for China to stockpile all the materials it can find on the market because the US is hellbent on printing more dollars and thus increasing commodities prices and inflationn. Ah also finish that Digital Yuan ASAP

 

[Tyler]

This sentence makes no sense, blockchain as a protocol is real. Bitcoin is just one of the many (potentially endless) number of blockchain based cryptocurriencies out there in existence today. Because of first mover advantage aka social networking effect, it just so happens currently bitcoin is one of the most popular blockchain based cryptocurriencies instances out there today.

Officially to this day no one actually knows who created bitcoin. The original developers who open sourced and released first versions of bitcoin into the wild never publically came forward to claim credit and later completely disappeared never to be heard from again.

Just because its open source, and even if there were no inherent cryptographic vulnerabilities to the ciphers bitcoin uses nor the software implementation of bitcoin, it does not preclude the possibility that bitcoin originated from a state government or Intelligence agency.

China and other countries should start their own cryptocoins and encryption methods.

 

[Tyler]

Exactly. The Americans are taking the piss and the rest of the world is sick and tired from their shenanigans. Their fancy think-tanks might not say this, but the time a currency becomes a viable contender against dollar they will drop the dollar in a heartbeat.

The issue is that the dollar is now tied to selling oil (petrodollar), and that the rest of the currencies are not suitable. The Euro cant do it because the EU is garbage (again) and can never manage to handle a crisis properly.
The Yen by the Japanese lol keep printing, the British Pound (small economy) and the RMB backed by China is impossible because it is not fully convertible to the markets (China is concerned about capital outflows).

The US is ready to bankrupt the world if it means that it can wash away its problems.

If you think about it, Bill Gates is smart enough to buy a lot of farmlands, instead of bitcoins.