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<blockquote data-quote="vantexan" data-source="post: 5412196" data-attributes="member: 24302"><p>So you&#039;re saying when our government was spending trillions they didn&#039;t have, investors made up the difference by buying treasuries that paid very little interest?&nbsp; Is that better?&nbsp; The fact is our government, including in Trump&#039;s last year, put more money into circulation than in all the previous years of QE.&nbsp; We&#039;re now saddled with high inflation and the only real cure is to raise interest rates so high that it takes money out of circulation paying interest instead of spending it on goods and services.&nbsp; That includes capital investment as business depends on debt to finance expansion.&nbsp; So that kills the stock market.&nbsp; And much higher interest mortgages will crash home values so there goes the real estate market.&nbsp; I sense a refusal on your part to believe it&#039;s that bad.&nbsp; You&#039;re used to a bull market in everything.&nbsp; The silver lining is it&#039;s worse in China and Europe.&nbsp; So expect to see capital flight from overseas to the only safe haven which is U.S. long term bonds.&nbsp; 10 year and 30 year.&nbsp; Because it&#039;s better to save your capital than to lose it elsewhere.&nbsp; Those bonds become more valuable with demand so it&#039;s not just about low interest.&nbsp; And as the reserve currency the U.S. government will guarantee those bonds as they can always print money to pay them.</p></blockquote><p></p>

[QUOTE="vantexan, post: 5412196, member: 24302"] So you're saying when our government was spending trillions they didn't have, investors made up the difference by buying treasuries that paid very little interest? Is that better? The fact is our government, including in Trump's last year, put more money into circulation than in all the previous years of QE. We're now saddled with high inflation and the only real cure is to raise interest rates so high that it takes money out of circulation paying interest instead of spending it on goods and services. That includes capital investment as business depends on debt to finance expansion. So that kills the stock market. And much higher interest mortgages will crash home values so there goes the real estate market. I sense a refusal on your part to believe it's that bad. You're used to a bull market in everything. The silver lining is it's worse in China and Europe. So expect to see capital flight from overseas to the only safe haven which is U.S. long term bonds. 10 year and 30 year. Because it's better to save your capital than to lose it elsewhere. Those bonds become more valuable with demand so it's not just about low interest. And as the reserve currency the U.S. government will guarantee those bonds as they can always print money to pay them. [/QUOTE]

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