General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsDon't Watch The Stock Market - Watch The Bond market
30 year Treasury yields are approaching 5%. When long term bonds outpace short term bond yields it can be for good reasons or bad reasons. This is for bad reasons, when Krasnov is trying to gain control over the Fed.
Erdogan in Turkey took control of his central banks and this July Turkey's inflation is 33.5%.
The stock market moves merrily along, loves chaos, can make lots of money shorting disasters.
Krasnov wants to control the Fed to crash the dollar, it will take more dollars to buy things, hey, we always have Crypto.
LakeVermilion
(1,648 posts)His crypto offerings do compete with the dollar.
chicoescuela
(3,208 posts)gab13by13
(32,789 posts)no_hypocrisy
(55,390 posts)Post WWI Germany did that to pay Reparations for money it didnt have. Deutschmarks were essentially worthless.
gab13by13
(32,789 posts)That isn't true any more.
Johnny2X2X
(24,438 posts)And on the Right it's part of their anti-intellectualism. The economists and bankers that sit on the Fed are among the most skilled and talented in the world. They've spent their lives dedicated to learning about finance and the economy. It's a group of experts who work together to help the economy reach maximum employment with modest inflation, that's their goal. They aren't perfect, they sometimes get things wrong, but there is no group more qualified to do what they do. The right wants to throw that away for gut feelings and chaos.
For all the heat the Fed takes, they've steered this economy through troubled waters over and over and avoided depressions. It's not their fault the politicians have created a system that rewards the rich and punishes working people.
Trump is a no nothing, the more influence he gets over the Fed, the worse off we'll be.
Fiendish Thingy
(24,107 posts)Before settling to the current 33%.
A rate cut by the fed in September is almost a certainty unless inflation data comes in super hot.
At least one more cut expected by year end.
Rate cuts, along with tariffs, will goose inflation.
The DNC can fire all its consultants and use my proposed slogan for 2026 and beyond free of charge:
Had Enough?
gab13by13
(32,789 posts)unless Krasnov kidnaps Powell's family.
Had Enough isn't good enough. Democrats have to do more than say to voters, we aren't as bad as the other party.
Democrats need to go back to their roots and stand for something.
Fiendish Thingy
(24,107 posts)With the qualifier if inflation doesnt spike
gab13by13
(32,789 posts)That's what the people who want the Fed to cut rates are saying, and what the MSM is saying.
I admit my opinion is an outlier.
Fiendish Thingy
(24,107 posts)It was reported a week or so ago after the minutes were released.
Powell is stuck between a rock and a hard place- stimulate the economy based on bad job reports at the risk of stagflation.
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