Why Interest Rates Are Soaring

Discussion in 'Markets & Economies' started by hawkeye1, Mar 1, 2021.

  1. mmm....shiney!

    mmm....shiney! Moderator Silver Stacker

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    I don't think they know how long for. Lowe and the Board changed tack a couple of months back from giving indications of how long they'll pursue accommodative monetary policies to outlining what indicator's they're watching as to signal when they'll return to a less accommodative policy.

    I see underlying inflation expectations for the year have crept up 1/4% since Dec 2020.
     
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  2. mmm....shiney!

    mmm....shiney! Moderator Silver Stacker

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    https://www.piie.com/blogs/realtime...bond-yields-are-not-good-predictors-inflation
     
  3. STKR

    STKR Well-Known Member Silver Stacker

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    I guess it depends if this is a strategic move towards "Building Back Better", aka "The Great Reset".

    The markets will tank if they're allowed to tank, In My Biased and Uneducated Opinion.
     
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  4. BuggedOut

    BuggedOut Well-Known Member Silver Stacker

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    Spot on and I have considered this possibility. I was very concerned about it going this way about a year ago when covid first hit and the economies of the world were being demolished. But at this point I think a deflationary default type of collapse results in TPTB getting strung up in the streets. A far better way to reset the system is to use populist socialism to totally debase the worlds reserve currency and then replace it with a digital SDR. Average Joe will have no clue what just happened but doing a reset that way would not only wipe out the middle class with inflation, but it would set up a new monetary regime nicely while preserving TPTB at the top. As far as I can see this play is already in motion.
     
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  5. mmm....shiney!

    mmm....shiney! Moderator Silver Stacker

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    Next to impossible to achieve even if it were true that TPTB actually existed and were able to exert a concerted effort and pull the strings of the leaders of the nations of the world. I think you're watching too many whacky youtube videos.

    Sovereign nations are not going to give up their monetary autonomy. They can't agree on trade. They can't agree on climate change. They can't agree on whale hunting. They can't agree on foreign policy. They can't agree on human rights. And they certainly won't agree on having their treasuries controlled and dictated to by some Imaginary Council of Elites.

    Unless of course it's the lizard people then we know that The Illuminati funded the deep space communications satellites that sent the first messages of contact. Or was that with the Pleiadians? Shit I can't remember. Must've been those chemtrails I saw today, or was it when I got HAARP blasted in my sleep after I fell asleep watching a doco about how they faked the moon landing?

    Anyway. Fuck the moths.

    Screen Shot 2021-02-13 at 1.48.35 pm.png
     
  6. mmm....shiney!

    mmm....shiney! Moderator Silver Stacker

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  7. 66rounds

    66rounds Well-Known Member Silver Stacker

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    See above if you're interested in what koolaid tastes like.

    You live in a centralised world, where many decisions are only made by a handful of people (e.g WHO dictates are followed to the T by supposedly sovereign and independent national health departments). You don't have to believe in a cabal or elite cohort to understand that those who do hold the reins, whoever or how ever many they are, don't give a shit about you and certainly don't intend to loosen their grip anytime soon. And the best way for them to maintain power is to continue their cyclical transfers of wealth upwards, whether through destruction of small business or minimum wage laws or speeding tickets. Nothing is benign.

    If you truly think there are sovereign nations independent of the IMF/BIS, I have a bridge to sell you in Sydney Harbour. (John Titus of BestEvidence has numerous documentaries that can cure you of this mental block).

    The "chaos" of nations disagreeing is the plan. Ordo ab Chao has been the modus operandi of rulers since the time of organised societies. They also seem to be find of Hegelian Dialectics (see pandemic, see bond yields, see GFC)

    https://www.minds.com/CorbettReport/blog/how-to-play-3d-chess-1212954655043592192
     
    Last edited: Mar 2, 2021
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  8. mmm....shiney!

    mmm....shiney! Moderator Silver Stacker

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  9. 66rounds

    66rounds Well-Known Member Silver Stacker

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    Just doing my bit debunking some of the FUDD spread on this forum as you are fond of pointing out! :D
     
  10. mmm....shiney!

    mmm....shiney! Moderator Silver Stacker

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  11. BuggedOut

    BuggedOut Well-Known Member Silver Stacker

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    Have you heard of the International Monetary Fund?

    How about Special Drawing Rights?

    These things already exist and they have functions.
     
  12. BuggedOut

    BuggedOut Well-Known Member Silver Stacker

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    As for TPTB...it stands for The Powers That Be. Those would be presidents, prime ministers, central bankers, captains of industry. They exist. They have power. They are Powers That Be.

    But I take your point. I should not be making statements such as I have on a public forum. It is unwise and is only going to draw ridicule, so I will withdraw from this thread.
     
  13. mmm....shiney!

    mmm....shiney! Moderator Silver Stacker

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    Yep, SDRs are:

    That would account for why no Central Bank in any advanced country that has sovereignty over the issuance of its own currency actually has any SDRs. Now, as far as it challenging the USD's reserve currency status, there are about $318 billion worth of SDRs on allocation, BTC's market cap is nearly 3 times bigger, and at last count the US debt was closing in on $27trillion.
     
  14. ozcopper

    ozcopper Well-Known Member Silver Stacker

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    They are the powers that are seen, but not the powers that be!
     
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  15. adze67

    adze67 Well-Known Member Silver Stacker

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    We only see the puppets, not the puppet masters ;)
    They are the real PTB...
     
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  16. JohnnyBravo300

    JohnnyBravo300 Well-Known Member

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    Yield curve controls in effect now.
     
  17. Shaddam IV

    Shaddam IV Well-Known Member Silver Stacker

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    You don't need politicians anywhere in the world to agree with you or to agree with your agenda to make them obey you and to betray their countries and their own principles and to fall into line.

    You only need to explain to them that there is nowhere for their families and children to hide.

    It's also no accident that the motto of the new socialists is "By any means necessary".
     
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  18. mmm....shiney!

    mmm....shiney! Moderator Silver Stacker

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    I assume you’re certain of that?
     
  19. mmm....shiney!

    mmm....shiney! Moderator Silver Stacker

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    So you're saying that something you've never seen exists?
     
  20. mmm....shiney!

    mmm....shiney! Moderator Silver Stacker

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    Not having a go at you @JohnnyBravo300, just looking for a post that has something to do with the OP. How is it possible to get upward inflationary pressure in an environment of high unemployment and wage stagnation?

    Now if central banks can somehow magically get the unemployment level down to below 5%, and then we have a period where labour market supply fails to meet demand, then wages are going to go up and we may get inflation moving quickly. Or if governments can somehow magically get the unemployment level down to below 5%, and then we have a period where labour market supply fails to meet demand, then wages are going to go up and we may get inflation moving quickly.

    At the moment all we know is that CBs success rate at achieving their intended goals are next to zero, and that politicians still have a budget surplus fixation. Which means continuing levels of high unemployment and no increase in real wages.

    So, it doesn't matter what the bond market thinks. The buyers of government debt don't make public policy decisions around unemployment, wages and treasury budgets. Next month's news will be about some other "new" crisis.
     

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