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Old 07-27-2020, 07:25 AM
 
18,804 posts, read 8,462,725 times
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Quote:
Originally Posted by mathjak107 View Post
don't bet on this time being different .you will loose .

rates will rise with inflation , you can take that to the bank.

investors will see to it as they control the rates not the fed ... the fed just confirms they are happy with the moves or not ... the fed does not set bond rates . the worlds investors do . investors set rates every minute of every trading day based on greed , fear , and perception of INFLATION .


many times the fed has tried to raise rates like in 2006-2007 and the worlds bond investors fought with them and won .. that is how we get the inverted yield curve . that happens when investors around the world disagree with papa fed and wrestle away control.

learning the basics helps .....
Well the Feds certainly set and directly affect the shorter term rates. Longer term by the Treasury.

And the markets certainly affect rates, but indirectly. Markets more directly affect the prices/value of longer term paper based on many factors, including economic conditions, inflation and what direction rates seem to be heading.
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Old 07-27-2020, 07:42 AM
 
106,579 posts, read 108,713,667 times
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Quote:
Originally Posted by Hoonose View Post
Well the Feds certainly set and directly affect the shorter term rates. Longer term by the Treasury.

And the markets certainly affect rates, but indirectly. Markets more directly affect the prices/value of longer term paper based on many factors, including economic conditions, inflation and what direction rates seem to be heading.
world wide investors are a far bigger influence on bond rates then the fed ... if they weren't the inverted yield curve would not exist ...that is the result of the fed trying to raise rates while the worlds investors disagree and bid rates lower despite fed actions .
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Old 07-27-2020, 07:50 AM
 
18,804 posts, read 8,462,725 times
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Quote:
Originally Posted by mathjak107 View Post
world wide investors are a far bigger influence on bond rates then the fed ... if they weren't the inverted yield curve would not exist ...that is the result of the fed trying to raise rates while the worlds investors disagree and bid rates lower despite fed actions .
The effective rate, not the issued rate itself.
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Old 07-27-2020, 07:55 AM
 
106,579 posts, read 108,713,667 times
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Quote:
Originally Posted by Hoonose View Post
The effective rate, not the issued rate itself.
thats all that counts ... effective rate is the rate period . the fed takes bids , they dont set a rate. small investors get an average rate from that day and all bonds follow on the secondary market ... a 10 year new issue prices the same as a 20- year with 10 years left.

ultimately the worlds investors are in the drivers seat .
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Old 07-27-2020, 03:44 PM
 
3,319 posts, read 1,814,733 times
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Quote:
Originally Posted by Nik4me View Post
Just to be cynical, but practical:

in the worst case "the world ends today" scenario the US still have nukes, etc..
Bet we always can have what we need, if we have someone in the WH/Senate who has guts to make it work for taxpayers- otherwise why did we pay for all that?

To the OP: get a chicken farm or canned meat processing plant-or better yet- both!!! you will be all set!

( You can't eat gold or sell/convert it into something useful safely - there are always those who can have bigger muscles, bigger "guns", bigger "boats")
Governments could possibly use gold, not your average Joe? What if our government decides that they need gold for "national interests" and confiscate it?
Really?

You mean it won't make a nice soft filling between layers of my hundred dollar bill lasagna?

I guess no one will want the free Bullion Burgers when they empty the 'food bank' at Fort Knox.
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Old 07-27-2020, 04:33 PM
DKM
 
Location: California
6,767 posts, read 3,851,777 times
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Wait, you're selling your house and renting because you're worried about hyper inflation? Your best investment would be econ 101 at your local college.
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Old 07-27-2020, 04:41 PM
 
106,579 posts, read 108,713,667 times
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Quote:
Originally Posted by DKM View Post
Wait, you're selling your house and renting because you're worried about hyper inflation? Your best investment would be econ 101 at your local college.
I lived the double digit inflation of the 1970s .....rents only were able to go up slightly because wages don’t rise that fast .....our building owner owned a large apartment building. He was behind the curve for quite a while .....it wasn’t until inflation broke and started to come down that they were able to get caught up ....there expenses rose faster than rents and wages were able to rise ....no land lord wanted to lose a tenant , especially one still able to pay the existing rent ....it was a terrible time financially
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Old 07-27-2020, 05:25 PM
 
6,503 posts, read 3,431,151 times
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Quote:
Originally Posted by desfleurs View Post
We are selling our house and do not plan to buy another. Getting a little worried about hyperinflation. What is the best investment?
NOT SUBJECTING YOURSELF TO MARKET RENTS AND SELLING YOUR HOUSE

A not-so-distant second would be possessing stores of the actual goods you plan to consume, rather than convertibles whose values will inevitably succumb to the hyperinflation rates.

tl;dr - be a hoarder, they don't seem so crazy now
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Old 07-27-2020, 05:42 PM
 
3,771 posts, read 1,522,403 times
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Quote:
Originally Posted by mathjak107 View Post
it depends if we are talking just 1970's high double digit inflation or a zombie style attack .

i have no desire to hold physical gold . gold to me is just a trading vehicle ...

my guns and ammo are my zombie attack assets .
I thought you lived in NYC.
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Old 07-27-2020, 05:47 PM
 
6,503 posts, read 3,431,151 times
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Quote:
Originally Posted by blahblahyoutoo View Post
I thought you lived in NYC.
I think Westchester county, the land of "it depends". They like to consider themselves NYC when convenient, downstate when convenient.
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