The FED

[countryBoy641]

The FED "says" they want to kill inflation.
But it is this inflation that can eventually save the U.S. Treasury.
They have no hope of ever paying off the $30 Trillion of Treasuries, bills, notes, and bonds..
The next best thing is for inflation to remove the sting off the principal of that debt.
***
Problem is, I only see air above where we are right now.
I originally thought this chart needed to go to 6.00%
Or maybe higher.
Does the FED even have any idea what they are doing ?

 

[M.W.]

Inflation levels would need to reach 20% for several years for US Treasury to have the slightest chance to ever tackle its debt. And that does not even take into account newly issued debt. Good luck with that...

The FED "says" they want to kill inflation.
But it is this inflation that can eventually save the U.S. Treasury.
They have no hope of ever paying off the $30 Trillion of Treasuries, bills, notes, and bonds..
The next best thing is for inflation to remove the sting off the principal of that debt.
***
Problem is, I only see air above where we are right now.
I originally thought this chart needed to go to 6.00%
Or maybe higher.
Does the FED even have any idea what they are doing ?

View attachment 296054

 

[countryBoy641]

Well, I think that was their original plan.
20% inflation for 6 years.
At least that's what Luke Gromen has said.
But I just don't see that execution.

 

[SunTrader]

What an upside down world we live in. No one believes The Fed but a YouTuber .... now ya talkin'.

 

[M.W.]

Well, even a below average IQ individual should be able to discern that this is an impossibility to happen without absolutely decimating the entire population. If this ever came to fruition then we will have a host of other issues to worry about...

Well, I think that was their original plan.
20% inflation for 6 years.
At least that's what Luke Gromen has said.
But I just don't see that execution.

 

[countryBoy641]

10 year note is up nearly 20 bps today.
Its like the FED is packing everybody into Cattle Cars.
Most people are getting crushed with these rate increases.
Devaluing the national debt is one goal.
Crushing everyone is not one of the other goals.

 

[countryBoy641]

that this is an impossibility to happen without absolutely decimating the entire population.

The masses have Food Stamps.
Probably numerous other new basic need programs will be created to follow Food Stamps.

 

[countryBoy641]

I posted here the rates and chart for the rates.
I don't care if anybody here has ever heard of Luke Gromen or the other useless comments.
I was just looking at the giant airspace over the $TNX chart.
I find it stunning.
Does anybody have a comment specifically on that?
I look at a lot of charts, but I just don't see that (huge whitespace) very often.

 

[Peter8519]

The Fed does not have many tools to fight inflation.
Here is one. So, rates could reach 20%.

Shrink its $8T balance sheet.

 

[M.W.]

Of course do they have the tools, but it would decimate the entire American population. It will not happen unless core inflation points to such levels which it is currently FAR away from. We would need some serious energy crisis with twice as high oil prices as now, Russian full scale invasion, possibly into Europe even, and a Chinese takeover of Taiwan for supply chains to get so crippled that it would result in core inflation above 15%.

The Fed does not have many tools to fight inflation.
Here is one. So, rates could reach 20%.
View attachment 296059

Shrink its $8T balance sheet.