The Truth about Money Printing. Do you want to understand?

Discussion in 'Markets & Economies' started by President Trump, Jul 4, 2020.

?

After reading the above what do you believe:

  1. Interest rates will go up.

    7 vote(s)
    24.1%
  2. The Fed can just keep buying treasuries to infinity

    17 vote(s)
    58.6%
  3. Modern Monetary Theory will fix the problem

    2 vote(s)
    6.9%
  4. The US will default.

    8 vote(s)
    27.6%
Multiple votes are allowed.
  1. leo25

    leo25 Well-Known Member Silver Stacker

    Joined:
    Jun 8, 2010
    Messages:
    3,420
    Likes Received:
    1,679
    Trophy Points:
    113
    Location:
    Sydney
    Last i checked the Bank of Japan (central bank) owns about 60% of Japans government debt. So no, it's not mostly held by the Japanese people and thus not a problem.
     
  2. Timmy88

    Timmy88 Active Member Silver Stacker

    Joined:
    Mar 20, 2015
    Messages:
    110
    Likes Received:
    117
    Trophy Points:
    43
    Location:
    Melbourne
    I'm with you Leo, your home is not an investment, though many people think it is.

    On a side note has anyone notice how many brand spanking new $100 and $50 notes are around, or did I get just fluke lucky and get sequential numbered notes.

    Timmy
     
    leo25 likes this.
  3. Davros10

    Davros10 Well-Known Member Silver Stacker

    Joined:
    Aug 6, 2014
    Messages:
    568
    Likes Received:
    453
    Trophy Points:
    63
    Location:
    Canberra
    How'd you get to see Hundo's? The banks don't like to issue them and the supermarkets and others take them out of circulation. Saw a sign behind the counter at a 7-11 instructing staff to seperate them out.
     
  4. Timmy88

    Timmy88 Active Member Silver Stacker

    Joined:
    Mar 20, 2015
    Messages:
    110
    Likes Received:
    117
    Trophy Points:
    43
    Location:
    Melbourne
    Last four times I have withdrawn from the bank, have received brand new spankers, usually have to ask for hundo's through.

    No doubt about it $100's notes as in full swing production, despite all the crap about cash spreading the flu.

    Timmy
     
    Davros10 likes this.
  5. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

    Joined:
    Nov 15, 2010
    Messages:
    20,021
    Likes Received:
    3,164
    Trophy Points:
    113
    Location:
    昆士蘭
    I find it hard it difficult to fathom why forum members keep voting for "The US will default".

    I could argue that it demonstrates that a large proportion of the electorate are stuck in a time warp when it comes to the currency system I guess.
     
  6. precious roar

    precious roar Active Member

    Joined:
    Sep 18, 2012
    Messages:
    213
    Likes Received:
    72
    Trophy Points:
    28
    You really find it hard to fathom that about this forum's members?
     
  7. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

    Joined:
    Nov 15, 2010
    Messages:
    20,021
    Likes Received:
    3,164
    Trophy Points:
    113
    Location:
    昆士蘭
    ^ haha, fair point.
     
  8. leo25

    leo25 Well-Known Member Silver Stacker

    Joined:
    Jun 8, 2010
    Messages:
    3,420
    Likes Received:
    1,679
    Trophy Points:
    113
    Location:
    Sydney
    I find it interesting how many people in the general public still think banks keep gold in their vaults.

    [​IMG]
     
  9. Oddjob

    Oddjob Well-Known Member Silver Stacker

    Joined:
    Aug 19, 2018
    Messages:
    3,874
    Likes Received:
    4,624
    Trophy Points:
    113
    Location:
    Oz
    To be honest...I'm not surprised. For a great many of the public, the following are probably the most intellectually stimulating shows they watch.

    upload_2020-7-23_14-29-49.png upload_2020-7-23_14-30-21.jpeg upload_2020-7-23_14-31-43.jpeg

    TV today = "Emptytainment".....totally devoid of any quality journalism talent / news reporting or interesting content.
     
    Stoic Phoenix and leo25 like this.
  10. Timmy88

    Timmy88 Active Member Silver Stacker

    Joined:
    Mar 20, 2015
    Messages:
    110
    Likes Received:
    117
    Trophy Points:
    43
    Location:
    Melbourne
    Odd Job,

    You know why its called an idiot box...

    Ever noticed how anyone that stares into the lights looks like an idiot.

    Timmy
     
    Oddjob likes this.
  11. Oddjob

    Oddjob Well-Known Member Silver Stacker

    Joined:
    Aug 19, 2018
    Messages:
    3,874
    Likes Received:
    4,624
    Trophy Points:
    113
    Location:
    Oz
    Yep and they call what they show on TV "Programming"....which it does.
     
  12. President Trump

    President Trump Active Member Silver Stacker

    Joined:
    Jun 26, 2019
    Messages:
    270
    Likes Received:
    240
    Trophy Points:
    43
    I don't think I can amend the options. But if I could I would add one more; The US Dollar will tank.

    If the printing continues and interest rates are not allowed to increase the US Dollar will take the hit. Of course if all the major economies do the same thing all currencies can't drop so inflation would be my bet... another option I should have included.

    Oh and the 7th option, she'll all be fine.

    Don't think I ever got your vote Leo!
     
  13. leo25

    leo25 Well-Known Member Silver Stacker

    Joined:
    Jun 8, 2010
    Messages:
    3,420
    Likes Received:
    1,679
    Trophy Points:
    113
    Location:
    Sydney
    I made my vote a while ago. I lead the way to the leading vote :)

    I also think interest rates will go up for non government once price inflation started getting too heated.
     
    Last edited: Jul 23, 2020
  14. Oddjob

    Oddjob Well-Known Member Silver Stacker

    Joined:
    Aug 19, 2018
    Messages:
    3,874
    Likes Received:
    4,624
    Trophy Points:
    113
    Location:
    Oz
    The USA can't go broke. In 2011, a Discovery Channel show told us what everything in the USA is worth if the USA was sold as a job lot.

    You might recognise the presenter.

     
    leo25 likes this.
  15. leo25

    leo25 Well-Known Member Silver Stacker

    Joined:
    Jun 8, 2010
    Messages:
    3,420
    Likes Received:
    1,679
    Trophy Points:
    113
    Location:
    Sydney
    That’s a huuuge number.

    [​IMG]
     
    Last edited: Jul 23, 2020
  16. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

    Joined:
    Nov 15, 2010
    Messages:
    20,021
    Likes Received:
    3,164
    Trophy Points:
    113
    Location:
    昆士蘭
    USD demand is climbing. I wouldn't say soaring but compared to most currencies it probably is. And mostly it's got nothing to do with interest rates, it's more to do with the financial and economic conditions in the US which gives confidence to investors.

    I'm not sure why interest rates would need to increase if the printing continues, interest is just the cost of borrowing, and borrowing is very cheap. And will remain cheap. Maybe you're saying that interest rates will have to increase to attract institutional investors to buy government bonds? The securities are guaranteed by the central bank's policy of buying bonds on the secondary market (well that's how it happens in Oz), so as long as the bond buyers know that the CBs will buy them back, they won't be placing any pressure on the CBs to raise rates because they're all consensual players in the shell game. IMO.

    So in order for the USD to tank it's going to take a catclysmic shift in confidence by institutional investors (which you are not) in the whole financial and economic landscape of the US and the other leading Western sovereign nations.
     
  17. President Trump

    President Trump Active Member Silver Stacker

    Joined:
    Jun 26, 2019
    Messages:
    270
    Likes Received:
    240
    Trophy Points:
    43
    So pretty those oil wells I hope someone puts one five foot from my home.
     
  18. President Trump

    President Trump Active Member Silver Stacker

    Joined:
    Jun 26, 2019
    Messages:
    270
    Likes Received:
    240
    Trophy Points:
    43
    Why is the dollar index dropping then?

    That is exactly what I am saying. Interest rate is what attracts the investors. Flood the market with debt instruments and only higher rates will attract the additional investors needed. Yes manipulation by CB can hold interest rates down but money printing, all other things being equal, puts upward pressure on rates.

    I don't think cataclysmic. Just a decision to invest more in Europe. The Europeans have been investing in US assets without hedging their fx exposure. To do so would have removed the yield advantage that Treasuries held. But as the euro rises again the USD (which is happening now) this will become costly. More funds will flow back to Europe. I'm not sure why you say I am not an institutional investor, obviously I'm not.
     
  19. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

    Joined:
    Nov 15, 2010
    Messages:
    20,021
    Likes Received:
    3,164
    Trophy Points:
    113
    Location:
    昆士蘭
    Because you have a completely different view of the market compared to the people with all the money.

    Look at the USD Index long term. Euro demand will never ever ever ever exceed USD demand ever.
     
    Last edited: Jul 23, 2020
  20. JohnnyBravo300

    JohnnyBravo300 Well-Known Member

    Joined:
    Mar 16, 2019
    Messages:
    1,693
    Likes Received:
    1,267
    Trophy Points:
    113
    No matter what anyone says about the dollar it is buying less and less every week.
    Theres the government reported manipulated numbers and then the numbers the average person sees everyday and it doesnt add up.
     

Share This Page