Federal Reserve

Negative interest rates = Clown world economics. Honk honk.

>I think we take out huge loans with no intention of paying it back.
Very risky
Interest rates will explode.
You will become a debt slave for life unless there is a complete revolution.
Easier just to stack some rocks

lol you think people are going to VOLUNTEER to do that to be paid in paper?
goy toys really are brain dead

>war is inevitable
>let it come
>give me liberty
>or give me death

it's happening

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thing will *probably* be fine. But if you're worried, move out of major cities, go to somewhere relatively rural and mostly white (unless you're non-white)
If any shit hits the fan, it will hit hardest in dense cities and shitskin infested areas.
Buy some buttcorn, gold, a gun, and 3 months of food storage, water supplies.

board up the windows, stay inside. keep your weapon at the ready for any packs of feral rioters.

Yeah that's why they'll volunteer

deflationary assets, buy scarce

ameritards are going to make me alot of money. currently shorting some american blue chip stocks. the boom is over boys, media is catching up and wont be long until the wall street boys realise they cant sustain the huge bubble created under Trump. will be fun to see the financial chaos go down in the USA where every middle class family is debt ridden

Another doomer moron thinks he's smart.
Reminder to sage and hide

>Man, the 1920's will be the greatest decade EVER!!:DD

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There are countries in the EU that have had negative interest rates for almost a decade now, why do you all think they will somehow magically destroy the US?

Imagine being such a retard you fail to see negative interest rates+global(!) QE = a stock market so fucking high it makes you dizzy just thinking about it.

When the Dow hits 50k and the S&P hits 1200 how will you kill yourself?

They’re all tied into a currency union, the USD has reserve currency status. It’s like apples and onions.

is correct. They would never try this in the US.

Americans have a particular dislike of being fucked. The day after negative rates were announced, people would begin withdrawing all of their money from the bank.

Since we are on a fractional reserve system, it would only take a few days to wipe out every bank in the country.

The fed knows this, the government knows this. Therefore they would never dare to do it.

Therein is the problem. A lot of us have been bitching for years about rates being held artificially low. Not only does it discourage saving, it gives the fed less ammunition to fight the next recession. They will simply have to lower back to zero, try QE infinity again, and then just ride it out

Smart ones have been waiting for what's coming

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>print our way out of this
Son, there is no way out where it ain't gonna hurt

My point being, the fed has very few tools in their box. Rates should have been around 4.5%-5%. that would have give them options. But they didn't raise them because they were afraid of wall street having a fit.

Now they're in a box. They know it, everyone knows it.

Also it would mean losing the reserve currency status since cash should be abolished for that to work and you can bet your ass that the governments in latin america , africa or asia where people save money in usd , won't let their populations buy digital usd.

People buy cash dollars there , and with negative interest rates the us will lose the reserve currency status in less than 3 years.

so, will cities burn?
I want like a real life prediction of what is gonna happen.

Fuck Shit State

>reserve currency status
>meaningful in a discussion of domestic interbank interest rates

That's probably going to happen at some point. The big risk is whether China and Russia decided that a few million of their own starving to death is worth putting a final knife in the back of the US. If that day comes, we've got serious problems.

Hard to tell if it will happen. If it does happen, it will depend on how they react. The outcome could range from just a dullness (similar to the 70's), to an all out collapse with burning cities, gangs of roving murderers, etc.

what happens when china decides to dump all US treasuries?
or if russia announces a gold standard?
QE4?

That almost happened around 2008. China and Russia had talks about simultaneously dumping all of their debt on the market. Hank Paulson talked them out of it.

If it came to a real throat-cutting contest, the US would be the last to die because it's still the strongest economy with the biggest market. But it would certainly ugly.

If China and Russia dumped their debt, it would freeze the credit markets, which would bankrupt probably 40% of the US corporations in the first month (they all flow in and out of credit to fund their daily operations). Then the banks would get at risk.

Then, after more and more people started pulling money out of the banks, they would cascade fail until the president would force a bank holiday. And when that happens, confidence (which is what the economy runs on) would probably be destroyed.

In the meantime, all of the countries who chanted "death to America" would realize that that really meant to them (actual death). In the end, the US would remain on top, but not without millions of dead around the world.

Good question, fellow Jew. I'm thinking we need to poison all other options of "storing money", so that the goyim will be forced to use our banks.
However, our loans will be making jack shit on interest. If historical averages continue, we'll only have about a minimum 300 bp spread on the savings rate. Plus, the goys will be investing their money everywhere in order to keep it out of the bank, so we're going to have some competition for our loans, which will force us to hit that 300bp floor.
But then where does that investment/private lending money go? Are the goyim using non-federal reserve banks or other means to store their assets?

HOLYSHITDIDWEJUSTKIKEOURSELVES????

>Since we are on a fractional reserve system
So is Europe.

>Rates should have been around what ever the free market dictates

ftfy

The Fed is a communist institution and should be abolished and it's owners hung.

greenspan has been telegraphing it for weeks you dildo

High IQ post

Only two ways.

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>2 trillion dollar dump
>freeze US bond markets

For like, a day or two. US t-bill market trades the better part of a trillion dollars daily.

Please explain how we have the strongest economy in the world with a 2,000% debt to gdp ratio with a gdp spending based economy? Countries with trade surpluses, basically no debt and manufacturing dominance are the strongest economies. Please explain.

This.
And there’s speculation that the Chinese really actually own 2 trillion.

It would hurt them more than the US.
They’ve got a real liquidity problem in dollars.
People aren’t exactly clamoring for Yuan.

Since the great recession, I have had concerns about the fed's "duel mandate". Their guidance is maximum employment with minimum inflation. These goals can often be contrary to the longer term goal of sound monetary policy and a more secure currency.

I disagree. Once people start dumping US debt, the problem turns into who will be willing to buy more debt.

That is the real problem. We're ass deep in debt, but we require more debt just to keep afloat.

>the huge bubble created under Trump
>created under Trump
get a load of this guy

Because in the larger world economy, everyone is dependent on the US.

China has the manufacturing, but what would happen if the US market was suddenly closed to them (or dried up)? They would crash, and faster than the US.

And what of Europe? They have all of the social policies and a good standard of living. But what would happen the US suddenly removed the protective umbrella of it's military defense of Europe? They would fall into violent outbreaks. And matched with economic crisis, that would result in war. So they would fail faster than the US too.

And What of Russia? Large, powerful, rich with resources. But what happens when they can no longer sell their resources? What happens when they (and other nations) can no longer access our markets or import their food?

Same with the middle east. How long can KSA survive without the US gulping down their oil by the tankerful?

The US still has all its stuff from when it was a manufacturing powerhouse. it still has oil and gas and all sort of thing like that because US policy has long been to use the other guys stuff even if its more expensive.

God is scared

This is pretty based.

This is pretty retarded. Anytime someone suggests "muh USD will collapse", you need to ask yourself ONE QUESTION: Into what?
So answer me user, what is the USD going to collapse into? Where is all that value going to go? Do you know what "value" means to our current world order?

We haven't had a problem finding buyers for debt, because holding US debt is functionally what makes the economies of the rest of the G20 run. I know that you know that holding US debt allows foreign currencies to devalue against the US, and of all of the big holders of US T-bills, China's the big buyer precisely because it needs a large share of the US consumer market.

The reason other countries are willing to buy our debt is because of their belief that we will pay the interest and maybe (in some distant future world) eventually pay off the debt itself.

But what happens when that is called into question? What happens when people come to believe that the US won't have enough to even pay the interest? They stop buying the debt.

The Fed just buys the treasuries back, and the profits flow back to the US Treasury department (while the banks get their 6% cut from the fed). Fed has been buying up securities since '08. What's your point?

What happens when USA closes the Straight of Hormuz and Straight of Malacca, and one billion chinks are suddenly without energy, heat, and food? Are you going to maintain your "unified China" without US enforcement of sea lanes? Because a "unified china" is a total historical anomaly that's just waiting to crash.

Yes, US corporations use commercial paper to fund their daily operations, but you're greatly exaggerating their reliance on foreign markets. A slow down in the repo markets actually precipitated the '08 crash. But that was mostly Wall St. Sauce your 40% figure or GTFO.

I agree that the economy runs on confidence.

Only 30% of our public debt is held by foreign governments. China holds China $1.18 trillion and Japan is second at $1.03 trillion. Russia, being a quasi third world country facing demographic collapse only holds $15 billion.

Doomers need to calm down.

Exactly. Central banks aren't necessary. National banks on the other hand....

Fucking this. Nobody wants Yuan. The worst thing China can do is offer their Tbills up for a discount. "oh no! the horrors of getting bonds for good yields"

user, as I work through this thread, I'm getting the feeling that you have no idea how sovereign debt works...
If there are fewer buyers, then the market price goes down, which pushes up yields. This makes it better for regular Americans to get government bonds at a good return.
As a last resort, the Fed just buys it up and all the interest goes back into the Treasury. If you haven't figured the game out yet, the Fed is basically a black hole.

>He doesn't know he's one black swan away from DOW3k

Enjoy your EMP

Those who weren't trading 2006-2011 don't understand how close we came to the edge.

only invested 15 % of my net worth. it would hurt me alot but its manageable

> Doesn't know about Daniel's 70th week.
Not gonna make it.

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>Americans have a particular dislike of being fucked.
wtf is this actually legitimate? is the rest of the world really just cucked?

The military is the safest place during a recession.

Purchasing power you twat.

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it's coming blogs.imf.org/2019/02/05/cashing-in-how-to-make-negative-interest-rates-work/

>China holds China $1.18 trillion
China dumps those $1 trlllion t-bills and doesn’t buy anymore of that TRASH interest rates going to 10% or the dollar loses half its value and inflation goes to 10%. Either way the USA is fucked

Claiming The Fed doesn't work in the express interest of the US is fallacious.

Americans will stay complacent until it really hurts them. That's the point of no return for politicians, the rich, and the media.

Not understanding all currencies are priced relatively...."you twat".
Where does the purchasing power go, and by what sell/buy combination?

Let me tell you a true story. I think I'm probably typical of most American...
> on my way home from working a late shit
> 3 AM, decide to stop at 7-11 for a slurpie because it's summer
> park in the lot. I am the only car there
> I am the only car on the road
> in parking, one of my wheels is over the line on the lot
> go in side, manager says "move your car"
> huh?
> he says "you're taking up two spots. I won't serve you until you move your car".
> I leave
> I get pissed off
> I go 15 years without ever shopping again at 7-11
> they keep sending me ads in the mail
> they go in the trash
> because I hold a grudge.

Start studying military doctrine, get firearm training(including maintenance), if you're in a rural area have a brass reloading station, keep alot of rations, roads will eventually turn to shit so start doing cardio or get a horse if you're in a rural area.

stop parking like a retard

It's true. The reason American prices never include the tax is because we want to know exactly what the tax is, and if its changed recently. That's one example.
The sheer difference between GAAP and IFRS should've told you this already though. Americans want the truth. Rest of world just wants to go to sleep easy.

So just to cash transactions? Should be safe in nigger and spic free areas. Maybe even in spic areas, since they do everything in cash.

Don't be dense, that's not close to the sole reason why central banks accrue US debt almost to the exclusion of all else.

khanacademy.org/economics-finance-domain/macroeconomics/forex-trade-topic/macro-the-foreign-exchange-market/v/using-reserves-to-stablize-currency

If you follow the thread, we're talking about a situation where other nations give up US dollars as a reserve and China/Russia flash sells its US debt.

I indeed did follow the thread, but the global system would be an extremely different system if countries could give up reserves of US debt and not very quickly enter financial difficulties stemming from rapidly strengthening currencies. That they cannot, or even feel like they cannot, is a big deal.

China would have a bad recession but the rest of the world including their own citizens would buy their own shitty products. Without a United States to trade with they can let their currency appreciate and their citizens can purchase their own cancer infused products. America is a cancer on the rest of the world. We live beyond our means, we spend money we don’t and the rest of the world takes our toilet paper currency and buys our debt. I only foresee the gringo able to do this for too long. Sooner or later the kike banksters will want to cash in on their debt based slave economies around the world and takeover for a one world currency. That whole who would buy Chinese products without the US myth is just a myth. Like nobody else has money? China can afford to lose much more their leaders don’t have to worry about getting elected every 4 years. They can take this trade war out until they long as they want. Also Russia is a shithole and doesn’t have much to sell but what it does sell it barely trades with the us already. It’s biggest partners are in Asia and the Middle East.

Sure we have buildings ready to
Be built with manufacturing equipment? How retarded is your statement. The (((globalists))) picked China as the new hegemony decades ago since they’re much easier to take advantage of their own people and manipulate. No unions to deal with, no regulatory agencies, just outright plain corruption and awful
Shitty ass products. Perfect equation for greedy scumbag faggots.

But what happeneds when said countries currency collapses despite how many reserves they buy? No amount of purchasing us bonds will
be able to prevent the fed from lowering rates and printing money. That economic theory is retarded makes no sense. If it were true the fed would be buying Chinese government bonds faggot.

Honk honk

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I can't take this board anymore

Read a book on market value brainlet

u probably think gold is gay and bitcoin is gonna save u

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Yeah, really stuck it to the man. Bet you lost 20 pounds cause you weren't drinking 7/11 slurpees anymore

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China had a quota for foreigners trying to buy PBOC bonds until like two years ago.

>No way they will ever allow that in the US

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>Americans have a particular dislike of being fucked
Pays for Israel
Pays for IMF
Pays for UN
Pays for NATO
Pays taxes to USA regardless of country of residence
Government can legally confiscate your gold
Get taxed on crypto to crypto exchanges
Don't even get decent health insurance unless you work a desk job.
Yes we Americans certainly don't put up with getting fucked.

goodest goy

>What will the goyim do once they start being charged to store their monopoly currency in the bank?
Buy more silver, gold, guns and ammo.

10 more years and cash will be completely phased out. At that point all bets are off and you can be sure they'll go negative to keep the ponzi economy afloat. Better buy precious metals and bitcoin now while you still have a chance.

it will soon cost 9,821 bitcoin for 1 ounce of silver

>American basedboys
>fighting

>So answer me user, what is the USD going to collapse into? Where is all that value going to go? Do you know what "value" means to our current world order?

If the usd loses the reserve currency status so the demand for it and the us economy becomes more inflationary as the printed usd lack demand.

Please make it so

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Black cities probably.

Buy 2 horses and breed them. Once the zombie plague hits horses will become the new bitcoin

>Banks follow Basel 3 and buy a bunch of gold
>Have puppets pop the debt bubble leading to negative interest rates and a massive pump in the price of gold
>Sell gold for fiat at the very best moment to buy the dip like a beast
Or
>Go back to a gold standard.

>muh strong economy
>runs a trillion dollar deficit a year

the goyim?
you mean the poors?

who cares lol

We're gonna try this cool new QE shit, Japan hasn't collapsed yet and we're the fucking USA, the world would crumble if we collapsed, so the powers that be will do everything they can to make sure we don't.

The USA: too big to fail (because globalization)