What if I said... the bond market is about to collapse.
In 08, the bailout was the Fed buying shitdebt from banks. Banks used that credit from the Fed to... buy stocks and bonds. That is, the Fed gave them free money so that the Fed could borrow it back and pay interest on the valueless debt it had just purchased. This valuless money printer is no secret though. The money printer kept running. We were quantitative easing for the past twelve years. We created even more corporate shitdebt, and the Fed kept buying it, then selling bonds for the fake money they printed. The shit sausage is reaching critical shitmass.
And it's not just bad mortgages this time. It's all debt. Credit card debt nobody can maintain and defaulted on with no hope of recuperation, banks sold to the Fed. Bad corporate debt, these massive VC firms pumping bilions into tech ventures that never gets paid off, VC firms sold to banks who sold to the Fed. The lowest tier of mortgages that barely survived 08 that are essentially shit, banks sold to the Fed. Corporate real estate that cant be paid now because it's worthless in a pandemic, sold right to the fucking Fed. Roughly 1/2 of all corporate debt is now the Fed, 1/3rd of all mortgages, now the Fed. Add on recklessly lent student that's not getting paid that the Fed just gave out.
So all Federal bonds are stuffed with shit, debt that goes absolutely nowhere and sucks value out of the economy. The Fed is paying interest to the companies that created shit debt but the interest has dried up. It's not just covid that dropped bond rates to 0, what they want you to think, it's the collapse an enormous ponzi scheme with dwindling rates. There's no new value coming in, and the money printer can't create value fast enough anymore.
I can't tell you for sure when it will happen, but the bonds are about to go unpaid. In fact they may already be not paying the biggest domestic banks that hold the shit bonds, or some info that I'm inclined to believe says as much. Look into pic rel. and you might figure out who.
I may be able to post more later this week. It's unlikely but I might have something more concrete.
I mean this system has to come tumbling down at some point, it's just a question of how long they can delay the inevitable. How to profit from this? Bitcoin obviously. Probably ammo and other shtf gear and precious metals. What's a good business that profits from a total economic collapse?
Jaxon Watson
Shit's not gonna hit the fan. They're just declare bankruptcy and start over
Brandon Davis
kikes will fuck your eyesockets with a sawzall and sell your children into sex slavery before they let this jewish house of cards fail. consider that.
Dylan Mitchell
fdamn right
Jordan Jackson
I'm going to cash before the GA runoff election and buy back in once the markets price in two years of communist legislation
Christopher Allen
Is this good for xrp or bad?
What about crypto in general?
Zachary Carter
bump
Sebastian Richardson
You are absolutely retarded.
Luke Gray
So, it'll be a regular Tuesday?
David Hughes
Shoo schizo shoo
Aaron Evans
Anyway you can give us a visual aid to help us brainlets understand this information? A game or a sexy woman in a bathtub would be great thanks
Cooper Perez
Kek
Cameron Powell
Food, sanitation, heat, water, rare metals, gas, high quality material clothing/footwear
Jordan Ward
Gonna need sources on those claims u are making buddy boy
Juan Phillips
>about to collapse
about to collapse? the interest rate is like 0% i heard maybe -1.5%... sounds collapsed to me
Easton Clark
Does that mean they'll pay me to take out a mortgage? Lol
Jayden Johnson
if you represented like a gazillion mortgages in some convoluted investment scheme, yes! :)
Jayden Gonzalez
Yes and they charge interest rates on your frozen investments
Adam Turner
Heh you realize we're max 5 years from a total systemic economic collapse right? MMT is going to implode as well. Probably a comorbidity
fed buys up shitty debt owned by corps with money that comes from nowhere, this injects capital into the system lowering the demand capital, thereby keeping bank to bank rates within the fed funds target, funny part of this is that much of the debt is issued by the US treasury, which is funded by the fed or some shit like that, so the fed is trading fake money for debt that they owe to themselves
Connor Nelson
Is there any way to actually profit from this? Everything dumped in March pandemic. Seems like all investements lose in a recession
Zachary Thomas
This glass of champagne is actually full of piss. The federal reserve fills it with more piss they buy from corporations using money they printed. The corporations then buy the piss with the fake money, and the government pays off debts with the fake money. But the problem is the more and more piss fills the glass, the closer it is to overflowing. It costs more and more to keep it from overflowing but we keep adding piss anyway. As soon as we can't pay to stop the piss from overflowing, the value of a bond will hit the ground faster than the piss does.
A short on a bank of your choice placed with a credit union broker. It will be very hard to get a mortgage.
Everything I wrote is true. Not all of it is readily avaliable information to the average person. DYOR, I'm sure you can find a lot out there.
Charles Powell
Go all in crypto. Only system which is not dependent on government funny money The collapse will likely lead to huge inflation because they need to print more money to pay the debts
Carter Rogers
Once in a while someone comes along on Zig Forums or Zig Forums and leaves a big brain take on the state of the world or economy. Of course I can't find any of the threads. There was a thread I think on Zig Forums earlier this year that were really interesting. It was a lot of text, dozens of posts at around the character limit. He was talking about the New Silk Road and other stuff but I think mostly the overnight repo market and what the liquidity crunch meant. Also talked about what would happen if/ when dollars flood back into the market from overseas. If anyone has that link or screencap please drop it. I guess that would have been like April.
Ryan Campbell
gov will crack tether and crash crypto first, then the fed will crash the rest of the economy theres no escape
This would have been a big brain take before the bond market collapsed
Aaron Russell
is this the same repo they were doing since september 2019/march2020 or are we round 3 already? stopped caring since march with talf allowing every form of debt known to man to be used as collat + "emergency" removal of reserve ratio requirements kek. Pretty sure if you look hard enough u can find the 2018 discontinued IOER st louis fed graph that looks like a fucking crypto rugpull
If you think the bond market crash already happened you massively underestimate how bad it can be. That repo was from 2019. Round three may be about to occur, filling the fed with more Junk bonds. This will signal that banks are reluctant to buy junk assets, so the Fed is approaching rough waters itself.
