Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
You are saying Mathjak's profits on treasuries don't exist?
I'm saying that the only reason U.S. Treasuries haven't tanked in the same way as Greek sovereign bonds is because the Feds are destroying retirement funds in order to buy up our own debt. Greeks can't buy their own debt because the ECB has to do it for them. As you can see, the concept of buying up one's own debt is ridiculous and what is really happening is that currency is being debased. Very similar to what happened in Germany during the Weimar Republic. This is why the German Bundensbank is so resistant to the ECB maneuvers. The ECB is destroying German wealth.
How long can this last? As long as people allow central banks to destroy their savings or until the savings are gone. You can ask the Greeks and Spanish how long this is.
As far as I am concerned, all of those on this forum who believe that a country can buy its own debt into prosperity are right in the same group that said "Home values never go down". A complete misunderstanding of economics and history. Anyone who has ever looked at history would know that historically home values go down because they are a decaying asset. The only reason they went up for a short period in history is because government subsidies (transfer of wealth or wealth redistribution).
...
As you can see, the concept of buying up one's own debt is ridiculous and what is really happening is that currency is being debased.
...
Agreed, I mentioned this illogical situation in an earlier post.
Right now the largest holder of treasuries in the Social Security Administration and a portfolio of treasuries that is growing rapidly is the of the Federal Reserve Bank.
We have a system that people accept because it has worked for a few decades but it makes no sense and is nearing a breaking point.
You are saying Mathjak's profits on treasuries don't exist?
That's the point being ignored. Profits have already been made and in many cases taken off the table. Better to be up 13 percent when poops than up zero. I hate to be blunt but real estate has already been bought.
So many members here talking about how to make money in a decaying economy. "How to make money while the Economy is Sinking". What silliness? How long do you think this kind of wishful thinking will last? I've been through it all. As if it is possible to abstract making money from the underlying economy.
Let me say point blank. Every time there is worldwide economic decay as we are now witnessing ... everyone loses. Not gold, not oil, not diamonds, not stocks, not bonds win out. Why? Because all of those borrowers who the Feds are so eager to lend to, even though they have no means to ever pay back the loans, default and wealth evaporates. It happened during the tech bubble. It happened during the housing bubble. And it will happen now, in what amounts to a worldwide bailout of corporate bonds, including U.S. bonds which would be stratospheric if the Feds weren't buying our own bonds. So we are in a little period where someone can again believe that they can make money on bad investments (e.g. corporate stocks). Lessons still to be learned.
During the last four years, the Fed has added $55,000 in debt to every household's balance sheet. It is wiping our our wealth in order to save the bankers who made all of the terrible loans. What we can do? I guess what people normally do when their wealth is being obliterated. Organize and begin to protest the destruction of their life long's work.
How long will it last the last three years have been awfully good so many can and now are hunkering down
That's the point being ignored. Profits have already been made and in many cases taken off the table. Better to be up 13 percent when poops than up zero. I hate to be blunt but real estate has already been bought.
Not alot of people buy and sell Treasuries. They usually buy and hold til maturity.
I don't think the title of this thread was "Can someone please retread for me all of those ways available to me to speculate and lose my retirement savings that I need in order to survive for the next two decades". I think the title is whether the Feds are destroying retiree's savings, and the answer is absolutely, incontrovertibly, Yes.
And I will go this far: I actually wrote to the Feds and they acknowledged this. They just think it is necessary in order for the economy to survive. Laughable or detestable. Take your pick.
Not alot of people buy and sell Treasuries. They usually buy and hold til maturity.
I was referring to equities and other investments that seem to be under attack by a few. As far as holding til maturity ETF's and mutual funds provide an easy way out if your intent is not to hold until maturity especially in the case of 30 year Treasuries.
I was referring to equities and other investments that seem to be under attack by a few. As far as holding til maturity ETF's and mutual funds provide an easy way out if your intent is not to hold until maturity especially in the case of 30 year Treasuries.
Oh. The comment you replied to referenced profits on Treasuries..see below:
Originally Posted by newenglandgirl
You are saying Mathjak's profits on treasuries don't exist?
I don't think the title of this thread was "Can someone please retread for me all of those ways available to me to speculate and lose my retirement savings that I need in order to survive for the next two decades". I think the title is whether the Feds are destroying retiree's savings, and the answer is absolutely, incontrovertibly, Yes.
And I will go this far: I actually wrote to the Feds and they acknowledged this. They just think it is necessary in order for the economy to survive. Laughable or detestable. Take your pick.
Perhaps with the possible demise/reduction of SS as you may be suggesting alternative income streams are even more needed. Thats what folks are probably in agreement about that we all need to have multiple income streams so we are not dependent on one. I think we all agree that SS has challenges and Fed policy is not helping SS at all. That is why I linked the type of treasury notes that are actually going into the trust fund because it isn't a pretty picture to many. So with that in mind we are all developing our plan B's and C's and D's etc. Let us all hope that our various back up plans work for all of us so we can continue to feel we have a secure retirement. Again this is an age related issue as how we manage our investments is very different at 25, 45, 65 and 75. That being said once again how we respond to the SS issues is being viewed thru our own prism and may or may not be viewed the same by others. As far as the Fed and their policy they are at least being transparent and letting us know how long they are going to keep rates low so we can do what we think is feasible and that was how we got to other investments.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
