The FED
- Thread starter countryBoy641
- Start date
lol, the art of apes. As if anyone in the market, or Fed, or US Treasury, or anyone for that matter other than total idiots cared about those past highs in that index. You can't possibly be THAT stupid...
There is nothing in your response that is useful to me.
As I mentioned, and this post was created in the Tech Analysis section
I am interested in feedback from other market participants re "Rates".
The level of interest rates, and prospects for where they may go.
If you know anything about TA, please use that to organize your thoughts.
Otherwise, let me know what ideas you have.
WHY would TA dictate where rates go? Do you want to be stubborn or you want to get it right? TA does not determine where rates go, the economy and political events DO!!!
That comment is way too harsh.
Paul Volker pushed rates until Dow stocks started to fail.
International Harvester (in the Dow) cut it's div to zero (I think), then reorganized.
A couple of other boulders fell (Continental Bank, EK, a few others I can't remember).
20% is the absolute max, back in the day of non-floating rates.
Now everybody has floating rate everything.
The FED could never get to 20% now.
So 20% is good history for people to know, but can't be done again.
Oh please.
Have you yet discovered that the FED does not send invitations to investors who would like to attend their policy meetings?
If you have figured that out, then have you resorted to charting the rate changes for yourself?
Do you have any thoughts on it.
If not, well ...
You obviously know NOTHING about TA.
Nothing wrong with that.
But just never imply to anybody that you do know something about it.
The U.S. government, of which the fed is a part, could, if necessary, buy back all of the outstanding Treasuries in a short time. As a matter of fact, Japan bought back ~50% of their outstanding JGBs not long ago. There is an important difference between the yen and the dollar, however, and thus between JGBs and Treasuries. The dollar is the most used reserve currency for international trade, whereas to a much lesser extent the Yen is used for international trade. Currently ~58% of world trade is done in dollars, down from ~70% in the recent past. Because the dollar is so widely used as a "reserve" currency -- just means trading countries need to maintain a liquid reserve of dollar denominated assets --- U.S. treasuries are in demand around the world. Dollar reserves are held largely in the form of interest paying Treasuries rather than non-interest paying dollars deposits. Treasuries serve entirely different purposes than borrowing.
The U.S. does not borrow. That's just a myth. The U.S. has no real debt. The National debt is simply the sum of outstanding Treasury securities, but these do not represent real debt.
Last edited: