"EVERYONE clamoring for rate cuts at this time... BAD IDEA!

Discussion in 'Economics' started by Scataphagos, Aug 2, 2024.

  1. piezoe

    piezoe

    We (meaning our U.S.A. government ) haven't accumulated any debt. You have debt. Your government does not. What you are incorrectly calling "debt" is the money left in the private sector economy after taxes.
     
    #31     Aug 5, 2024
  2. piezoe

    piezoe

    Bullshit.
     
    #32     Aug 5, 2024
  3. SunTrader

    SunTrader

    Here ya go - image, not animotion:-

    ! Brrrr.jpg

    Meanwhile CME FedWatchTool shwoing (ATM) 81.5% chance of 50 basis next (or sooner I think) meeting @ Sept 18

    Only 18.5% of 25 bp.
     
    #33     Aug 5, 2024
  4. Businessman

    Businessman

    If the government has no debt why are they paying almost $1Trillion a year interest?
     
    #34     Aug 5, 2024
  5. piezoe

    piezoe

    Treasury Securities are an essential money management tool of the Central Bank, and the interest paid on them is an essential component of these securities. Would you, or any private sector entity including foreign central banks, have any interest in holding these securities if they paid no interest? Think of them as just another form of U.S. money, albeit an interest paying form. The interest paid is part of the non-discretionary budget. It can become, via deficit spending and subsequent conversion to Securities, a part of our future obligation to increase the total of U.S. Money in the World.* Total U.S. money = U.S Treasury securities + non-interest paying U.S. money. Only a part of "non-interest paying money", however, is a part of the "money supply". U.S. Treasuries, even though they are a form of U.S. money, are not a component of the Money Supply; hence their great usefulness to the Fed. The Fed has no say whatsoever concerning the total amount of U.S. money (only Congress "prints") but the Fed decides how much of the total money will appear in the private sector as Treasury Securities and how much in other forms.
    _______________
    *To understand this sentence you would have to understand that Congress uses the Fed to print all its deficits, and then subsequently all those deficits are converted to Securities when Treasury auctions them. Later, as part of its regular money supply operation via control of interest rates, etc., the Fed removes some of the Securities from the private sector by converting them back to the non-interest paying form of money.
     
    Last edited: Aug 5, 2024
    #35     Aug 5, 2024
  6. SunTrader

    SunTrader

    FED and Tresh should you hire with the top-notch spin skills you possess.
     
    #36     Aug 5, 2024
    NoahA likes this.
  7. SunTrader

    SunTrader

    ... should hire you ...
     
    #37     Aug 5, 2024
  8. Tokenz

    Tokenz

    Don't take my word for it. Look it up and see how wrong you are
     
    #38     Aug 5, 2024
  9. piezoe

    piezoe

    :cool:
     
    #39     Aug 6, 2024
  10. Overnight

    Overnight

    This is where we finally call bullshit on your whole theory.

    For decades, there has been a monetary "debt clock" ticking. It is displayed in Times Square. Are you smarter than every other economist in the world?

    Here's how it goes, you pointless piker...

    The central bank (the Fed) lends money to the US government, at interest. That money, + interest must be paid back.

    Where does the Government get that interest back? Through the taxation of the American people.

    Here's the problem...The American people are paying interest on the private loans they get through private banks, which are having to charge the American people interest on the loans the private banks are getting through the central bank.

    Your whole BS about Treasuries and whatnot does not fly, because, as you put it, "There is no debt", we would not have a debt crisis in this country.

    Debt is a very simple concept. It is where you owe money to a lender.

    The US government must borrow money from the Treasury to fulfill it's spending obligations, at interest.

    The US government can shake, rattle and roll all it wants with bond sales, but the US government is INDEBTED to pay back the US treasury the money it borrowed, AT INTEREST.

    Economics 101. Piezoe, pipe the fuck down, you clown.

    Read MMM (Modern Money Mechanics), for fuck's sake.
     
    #40     Aug 6, 2024