[GHung]

$this->bbcode_second_pass_quote('', 'T')he US government has no problem meeting its debt obligations currently nor do most countries which was why I asked the question which countries were at risk of default. But apparently since you didn't understand the conversation you wanted to change topics.

[Outcast_Searcher]

$this->bbcode_second_pass_quote('GHung', '')$this->bbcode_second_pass_quote('', 'T')he US government has no problem meeting its debt obligations currently nor do most countries which was why I asked the question which countries were at risk of default. But apparently since you didn't understand the conversation you wanted to change topics.

[rockdoc123]

$this->bbcode_second_pass_quote('', '.')... and that's just a reference to Social Security. The declining work participation rate + an aging populace will affect all sectors of our highly leveraged economy, along with declining overall purchasing power, government services being cut, increasing healthcare costs,,,, I could go on, but methinks your mastery of self-delusion is complete. So go about your business and stop pretending the rest of us are, as you've called so many of us, "morons".

[Outcast_Searcher]

$this->bbcode_second_pass_quote('rockdoc123', '
')did you even bother to look at the charts I provided? Apparently not. They show household debt to disposable income has decreased rapidly from 2009 through 2012 and then has continued to drop at a lower rate ever since (i.e. it isn't worse) and the plot of personal income needed to service debt has been hovering around 10% since 2014 haven fallen from 13% during the recession. You are the one who is self-deluded....this is actual data on how much debt households have ...

[GHung]

$this->bbcode_second_pass_quote('', 'W')hich are NOT doom, by the way, they are simply lower living standards

[GHung]

$this->bbcode_second_pass_quote('rockdoc123', '
')
Obviously some reading comprehension problems there on your side. .

[rockdoc123]

$this->bbcode_second_pass_quote('', 'D')o you think no one would notice that that trend is since the last recession? QE1,2,3? Massive Federal debt increases? Trump tax cuts? Or maybe you think we're too dumb notice that your charts correlate nicely with the lowest interest rates since the 50s.

[GHung]

$this->bbcode_second_pass_quote('rockdoc123', '
')
..... You were arguing that people can't afford to pay off their debt now....not back before the recession so what numbers matter? .......

[GHung]

It was a simple question, doc. Strawman busted?

[Yoshua]

@ Rockhead

The U.S government is short USD 1.4 Trillion annually. The U.S government can't pay any little part of its debt or interest on it. But as long as the government can continue to borrow money to pay its debt and interest... everything is just fine.

I think it's called a Ponzi scheme. But who am I to judge.

[rockdoc123]

$this->bbcode_second_pass_quote('', 'T')he U.S government is short USD 1.4 Trillion annually. The U.S government can't pay any little part of its debt or interest on it. But as long as the government can continue to borrow money to pay its debt and interest... everything is just fine.

I think it's called a Ponzi scheme. But who am I to judge.

[Revi]

Back on topic, they cut interest rates yesterday, and it looks like things are calming down, or are they?

[Yoshua]

Back to topic.

The Repo spiked because the banks wouldn't accept U.S treasuries as collateral anymore...because the the banks could not find buyers for the treasuries on theirr own balance sheets...because they all knew that the U.S government was running a Ponzi scheme.

Only after the Fed accepted to print the money to buy the treasuries...the Repo rate came down.

The economy isn't really performing anymore like it use to do.

[Armageddon]

Repo is happening because banks won’t lend to each because they don’t trust each other. They know it’s all about to come down. So the FED has to bail them out. The FED is and will bail out everything. That’s where we are. Approaching end game. Got gold and silver? You better have

[Revi]

$this->bbcode_second_pass_quote('Yoshua', 'B')ack to topic.

The Repo spiked because the banks wouldn't accept U.S treasuries as collateral anymore...because the the banks could not find buyers for the treasuries on theirr own balance sheets...because they all knew that the U.S government was running a Ponzi scheme.

Only after the Fed accepted to print the money to buy the treasuries...the Repo rate came down.

The economy isn't really performing anymore like it use to do.

[shortonoil]

The repo crisis is the result of a liquidity shortage. It is the same shortage that is showing up all over the world. The shortage is appearing every where from bank runs in China to negative bond rates in Europe. It is occurring because the debt formation process, which destroys the currency in circulation, is greater than what the central banks can inject to compensate. The central banks ability to inject liquidity is limited by the credit markets ability to absorb it. This is an ongoing crisis that will only worsen until the monetary system fails. At the present rate of world debt formation the central banks will be completely overwhelmed in 24 to 30 months.

A new currency system will have to be introduced before the world's growing $341 in debt begins collapsing into cascading defaults. Some form of digital currency will most likely replace the present system. It will need to be a system that can operate with an economy that is consuming more assets than it is producing. The present debt based system can not. The new currency system can be expected to exhibit a number of initial, and unplanned Snafu's. PMs would be a good insurance policy to hold during the coming period of wide spread disruption.

[sparky]

.
More helicopter money thrown at the Repo market

From the very serious Financial Times
https://www.ft.com/content/fe562cbe-fee ... fa4e77dd47

" Many have debated why the market went wrong, so fast.
The Federal Reserve was so spooked that it did not wait for answers before stepping in.
The central bank’s gross cumulative support for the market — which allows banks and investors to borrow cash in exchange for Treasuries and other high-quality collateral — will top $11.5tn by the end of January, according to our sums. The Fed did not just stabilise the repo market. Now, it is the repo market.

Repos were once the liquidity-providing “plumbing” of the financial system. Now, they have taken on another role because post-crisis rules demand that financial institutions hold far bigger balances of safe assets — at a time when yields on such assets are low or even negative.


This transformation in repos was presaged by the equity market. The Fed’s bond-buying and interest rate-cutting programme initially supported the macroeconomic recovery. The extension of quantitative easing, however, changed its nature from an output-boosting policy into an equity-market stimulus.

Exposing these repo risks in such dramatic fashion would ordinarily lead participants to run for cover. Instead, the market is so vibrant that the Fed has had continuously to increase the amounts with which it supports overnight and even longer-term deals. The best explanation for this insouciance? De facto nationalisation of the market.

Desperate to keep short-term rates within its desired range, the Fed chose not to use its backstop — known as the discount window, where it provides higher-cost loans to banks, Using these transparent fallbacks would have allowed the repo rate to settle in a new, orderly, and perhaps smaller marketplace. Instead, the Fed just opened its vault.
Thus, what should have been a learning experience is now a new, powerful incentive for moral hazard. Speculative bets can be made with the understanding that taxpayers, through the central bank, will bail out any bad calls.
To be sure, its current repo backstop puts the Fed in a supporting role — it steps in only after primary lenders step back. Theoretically, the market could operate without the Fed, but it does not because lenders love having this backstop and the central bank is always there to provide it.

The Fed also offers reverse repos, a longstanding operation designed to keep market interest rates within the central bank’s target range, no matter the risks participants take. And now the central bank is considering making its new repo operations permanent, through a so-called standing facility. In for a penny, in for a pound — and, if you are a central bank, in forever.

But with central banks providing a backstop for both equity and funding markets, what is next? Some governors have decided that they must add digital currencies to their payment systems, not only to protect the globe from Facebook’s Libra, but also as a new tool that might better transmit monetary policy.

[Revi]

So they are still shoveling money into this beast?

[Outcast_Searcher]

$this->bbcode_second_pass_quote('Revi', 'S')o they are still shoveling money into this beast?

[sparky]

.
I'm not so sure about the importance of the trade deals ,
they certainly matter but seems to be used as an excuse to move the stock markets
in a time of very low return on money investment , money flow to shares
the returns are slim but better than lending money
so the stock market valuations are just financial refuge for lone desperate trillions of bucks