Open this if you want to understand WHY the Government has NO CHOICE but to print money and stimulate the economy…. Hey everyone!! Wanted to do an ECON 101 letter today. I’m going to do this the best way I know how… -> SIMPLE :) I always wondered 2 things…
The question i have I’m renting trying to find a home in Florida but the prices are off the chart and competition is fierce. Should I wait or dive head in if I can obtain a home at all?
Layman asking silly questions. If no one wants the treasury notes, wouldn't the government just control the rate to keep it low? If say the interest rate rises and there is enough FUD going around in stocks etc, then people will buy "safe" bonds/notes. The whole shooting foot analogy seems easy to control, if both lender and buyer are same as in your example.
Yep, exactly what they are doing. Not a silly question at all. They are printing money to control the rate and keep it low. If it rises they are screwed and so is the economy as a whole.
The question i have I’m renting trying to find a home in Florida but the prices are off the chart and competition is fierce. Should I wait or dive head in if I can obtain a home at all?
Kale, thanks for the article. Rising yields make only the newly issued debt more expensive, right? Is it enough to really break the gov?
Layman asking silly questions. If no one wants the treasury notes, wouldn't the government just control the rate to keep it low? If say the interest rate rises and there is enough FUD going around in stocks etc, then people will buy "safe" bonds/notes. The whole shooting foot analogy seems easy to control, if both lender and buyer are same as in your example.
Yep, exactly what they are doing. Not a silly question at all. They are printing money to control the rate and keep it low. If it rises they are screwed and so is the economy as a whole.
As rates are rising right now, the fed will have to print more and buy more treasuries to force the rate down.