1. Forum
  2. Usenet
  3. REC.AUDIO.OPINION

  • Joe triggers death spiral

    From ScottW@21:1/5 to All on Tue Oct 3 10:38:16 2023
    Deficits trigger inflation
    Inflation triggers rising interest rates.
    Interest rates raise deficits.
    Inflation exits the cycle as deficits trigger rates which lead to ever higher deficits.

    https://www.msn.com/en-us/money/markets/kelly-evans-this-could-be-even-harder-than-inflation/ar-AA1hDny5

    ScottW

    --- SoupGate-Win32 v1.05
    * Origin: fsxNet Usenet Gateway (21:1/5)
  • From mINE109@21:1/5 to ScottW on Tue Oct 3 13:32:14 2023
    On 10/3/23 12:38 PM, ScottW wrote:
    Deficits trigger inflation

    Inflation is down despite the deficit.

    Inflation triggers rising interest rates.

    The Fed has paused interest rate hikes.

    Interest rates raise deficits.

    No, lack of revenue raises deficits.

    Inflation exits the cycle as deficits trigger rates which lead to ever higher deficits.

    What's that in English?

    https://www.msn.com/en-us/money/markets/kelly-evans-this-could-be-even-harder-than-inflation/ar-AA1hDny5
    Since we beat inflation, maybe not the problem you say.

    --- SoupGate-Win32 v1.05
    * Origin: fsxNet Usenet Gateway (21:1/5)
  • From ScottW@21:1/5 to All on Tue Oct 3 19:46:11 2023
    On Tuesday, October 3, 2023 at 11:32:16 AM UTC-7, mINE109 wrote:
    On 10/3/23 12:38 PM, ScottW wrote:
    Deficits trigger inflation

    Inflation is down despite the deficit.
    Inflation triggers rising interest rates.
    The Fed has paused interest rate hikes.

    The fed no longer has control of interest rates.
    It's market driven and as banks can no longer buy bonds due to the risk
    of their value being downgraded with future rises, the market is shrunk.


    Interest rates raise deficits.

    No, lack of revenue raises deficits.

    2nd grade economics.....again.

    Read the article...again.

    ScottW

    --- SoupGate-Win32 v1.05
    * Origin: fsxNet Usenet Gateway (21:1/5)
  • From mINE109@21:1/5 to ScottW on Wed Oct 4 08:59:39 2023
    On 10/3/23 9:46 PM, ScottW wrote:
    On Tuesday, October 3, 2023 at 11:32:16 AM UTC-7, mINE109 wrote:
    On 10/3/23 12:38 PM, ScottW wrote:
    Deficits trigger inflation

    Inflation is down despite the deficit.
    Inflation triggers rising interest rates.
    The Fed has paused interest rate hikes.

    The fed no longer has control of interest rates.

    That's literally not true.

    It's market driven and as banks can no longer buy bonds due to the risk
    of their value being downgraded with future rises, the market is shrunk.

    Treasury bond values are fixed.

    Interest rates raise deficits.

    No, lack of revenue raises deficits.

    2nd grade economics.....again.

    It has the advantage of being true.

    Read the article...again.

    If I read the article, it would be the first time. I did check out the
    author and found nothing to suggest she has any special insight.

    --- SoupGate-Win32 v1.05
    * Origin: fsxNet Usenet Gateway (21:1/5)
  • From ScottW@21:1/5 to All on Wed Oct 4 20:08:39 2023
    On Tuesday, October 3, 2023 at 11:32:16 AM UTC-7, mINE109 wrote:
    On 10/3/23 12:38 PM, ScottW wrote:
    Deficits trigger inflation

    Inflation is down despite the deficit.

    No longer matters. The cycle was begun and can't easily be stopped.

    Inflation triggers rising interest rates.
    The Fed has paused interest rate hikes.

    Ten-year Treasury yields , which have added a whopping 25 basis points in just a week, hit another 16-year high at 4.5660% early on Tuesday. As Deutsche Bank notes, this is historically significant territory as the average of the 10-year yield going back
    to 1799 is around 4.50%

    Some pause. The fed no longer has control.


    Interest rates raise deficits.

    No, lack of revenue raises deficits.

    Yeah, those god damned piano teachers just aren't paying their fair share.
    Just stop the moronic BS. When everything else is static...tax codes and revenue...
    rising rates add a huge cost to gov't.


    Inflation exits the cycle as deficits trigger rates which lead to ever higher deficits.
    What's that in English?

    Seriously? You can't see that even with inflation sidelined....lack of adequate market for bonds
    forces sets the market rates above fed targets.


    https://www.msn.com/en-us/money/markets/kelly-evans-this-could-be-even-harder-than-inflation/ar-AA1hDny5

    Since we beat inflation, maybe not the problem you say.

    It's not just me....

    ScottW




    --- SoupGate-Win32 v1.05
    * Origin: fsxNet Usenet Gateway (21:1/5)