Does any1 LAUGH at how easily conjobs get manipulated? Post #588100 • Liberal Forum

LowIQTrash » 29 Jan 2025, 2:41 am » wrote: ↑
29 Jan 2025, 2:41 am
There is a trick that the Tiny Hats can use, and I don't even think this is far fetched.

The US issues trillions in Treasury bills and bonds every year. The interest rates are inversely related to their price.

If there is "persistent inflation" then the Federal Reserve will be forced to raise / keep interest rates high. What this does is devalue existing bonds purchased by foreign countries from previous years. If interest rates rise from 1% (back in 2020) to 4.5% (today), that's a major loss in bond value.

If those countries need to raise cash, and at some point this WILL happen due to some black swan event, they will dump their holdings of US governmenr debt.

The Tiny Hats in America can buy back these bonds, have the Fed lower interest rates, and issue new bonds (now at lower interest rates) and retire those higher interest bonds.

Basically offloading America's debt for a fraction of its cost.

I don't believe that the inflation was unintentional or unforseen. It was deliberate (and had nothing to do with Biden).

You just figured this out? This is why if you can buy any income-producing real estate today, and get a loan on it for at least 15 years, even at a rate that adjusts every 3-5 years, you are guaranteed to make money in the long run. You are paying the bank back with deflated dollars over time, and using your tenant's rent to cash-flow it. Meanwhile, inflation forces the value of your real estate up over time.