Fed “Doesn’t Care” About Inflation, Says E.B. Tucker! (ツ)

Discussion in 'Bullion Investing' started by fretboard, May 12, 2022.

  1. GoldFinger1969

    GoldFinger1969 Well-Known Member

    Not necessarily, as the U.S. dollar is the global reserve currency.

    Google "exhorbitant privilege". :D
     
  2. Avatar

    Guest User Guest



    to hide this ad.
  3. GoldFinger1969

    GoldFinger1969 Well-Known Member

    Very few individuals or institutions held their Treasury positions when bond prices bottomed.

    China didn't have sufficient reserves until about 2000.
     
    Andy likes this.
  4. Andy

    Andy Coin Collector

    I could answer this and current trend but I do not want to seem political.
     
  5. Andy

    Andy Coin Collector

    Hi Goldfinger, I was using a 1970’s movie to make a point non political. But I think policy decisions and global markets can be influenced by a few for many reasons with the below being a part of the leverage. 6B8DCCF7-5F2B-4CE2-BB28-34CF45E1C25B.jpeg
     
  6. GoldFinger1969

    GoldFinger1969 Well-Known Member

    Understood....but I think this debate is more economic and monetary than political.
     
    Andy likes this.
  7. Andy

    Andy Coin Collector

    F790B5D6-F3E9-4E94-828E-B3ECEFC77681.jpeg F790B5D6-F3E9-4E94-828E-B3ECEFC77681.jpeg
    I fully understand your points in both responses and this is like a three day conference in a few paragraphs on both of our sides. But those with money did make a killing on the high interest rates on Fed notes while that was a time it was hard for lower and middle class income to afford the high interest rates on home mortgages in the 1970’s going into the 1980s. It was gangster Vig. 6FC1B45D-F04D-44C8-871D-BCDEAAA2885B.jpeg
     
  8. GoldFinger1969

    GoldFinger1969 Well-Known Member

    Understood....I would just say that foreign holders can NOT just dump their Treasury holdings.

    Their currencies would appreciate and they'd kill their export markets, for starters.
     
    Andy likes this.
  9. Andy

    Andy Coin Collector

    Yeah. But I don’t see the difference of the two for I feel all three are manipulated mostly by the few. And usually a political outsider needs to take office like, going back far to not get some upset, Teddy Roosevelt who broke up the monopolies. Yes he had money but he was not part of their system and he was not taken out for he still did great things for US and world economy like the Panama Canal.“Bully” for him.
     
  10. GoldFinger1969

    GoldFinger1969 Well-Known Member

    I remember the 1980's vividly....rates finally started to come down in 1985 and 1986.
     
  11. Andy

    Andy Coin Collector

     
  12. Andy

    Andy Coin Collector

    Yeah. Younger Home buyers and sellers today have no idea how closed the market once was. Homes could be on market for 6 months to a year then. Now where I live, it can be a day.
    You seem to be very informed. It was great you added the export and import valve with currency into the conversation.
     
    Last edited: May 22, 2022
    GoldFinger1969 likes this.
  13. masterswimmer

    masterswimmer A Caretaker, can't take it with me

    Bought and closed on my first home in early 1985. We took out one of the early days adjustable rate mortgages at 9.5%. Ugh, that was brutal. Fortunately rates were beginning to come down a bit so the one year ARM was adjusting lower for a few years until we sold.
     
    GoldFinger1969 likes this.
  14. GoldFinger1969

    GoldFinger1969 Well-Known Member

    The Chinese Communist Party leadership knows that the yuan can NEVER be a reserve currency as long as they don't respect private property rights, have fully-functioning liquid money and bond markets, and end capital controls.

    Which the CCP will never agree to because it means giving up power.

    So....with a choice of challenging the dollar or maintaining power in China, they have chosen the latter.

    China's economic power is also set to wane, as the labor force shrinks annually for the next 30 years. China may not even pass the U.S. in GDP with their headwinds.
     
  15. -jeffB

    -jeffB Greshams LEO Supporter

    Heh. I wasn't aware of this act until a conversation just this past week with some of Dad's family. They're living on land that my great-grandfather (great-great-grandfather?) purchased at $100/acre, back in the late 19th or early 20th century. It's near Camp David, and in the crosshairs of developers building bedroom communities for DC/Baltimore commuters. I'd love to see the land stay in the family, but even with homestead tax protection, it's going to be enormously tempting for them to sell eventually.
     
    GoldFinger1969 likes this.
  16. Andy

    Andy Coin Collector

    Wow Jeff. Sounds like prime real estate. What a great way to build family wealth.
    A good real estate agent would let new buyers aware of this and I am not an agent but brought and sold a number of properties over the years and noticed that some people were totally unaware of such.
    Look into leasing the land out or doing yourself the agricultural tax breaks or exemptions that may exist in your state. I have known people who used chickens and goats for this as well.
     
  17. Andy

    Andy Coin Collector

    I hope you are right but with China setting up satellite tracking centers in Latin America, Naval Base in the Solomon Islands, gaining economic and military footholds in Africa and Middle East. They are trying to out position us. I think if this current leader of China passes on so to speak,as well as Putin, the world may get back on track to one global economy and reducing chance of regional and world war.
    C5672729-2657-416B-B79A-996295DE852F.jpeg
     

    Attached Files:

  18. GoldFinger1969

    GoldFinger1969 Well-Known Member

    MIGuy likes this.
  19. Andy

    Andy Coin Collector

    Hope you right, and you seem smart enough to be, for over population, plastics, and deforestation is killing Earth for us. Never mind a current leader in China who talks about a greater China on a weekly basis.
     
  20. -jeffB

    -jeffB Greshams LEO Supporter

    Well, you don't maintain an iron fist by talking down your country and its rightful place in the world.
     
  21. -jeffB

    -jeffB Greshams LEO Supporter

    Ah, I only wish I had skin in the game. Dad is one of the siblings who moved away, so none of the land is his, and none will go to me as far as I know. I'm not sure what I could do with it anyhow, as I don't want to move there, and I don't want to be a landlord...
     
Draft saved Draft deleted

Share This Page