Mechanics of Absurdity, Negative Yields, and Other Tweets of the Day

-edited

Here are some interesting Tweets that discuss negative yields, the threat of Trump, debt financing, and other topics.

Mechanics of Absurdity

Investment Grade Bond Yields

Poll Results: Trump a Threat?

Poll Results: Trump More of a Threat than the Fed?

Argentina Default

Climate Model Failure

America's Debt Burden

Dollar Debt Financing

Mike "Mish" Shedlock

Comments (16)
No. 1-9
stillCJ
stillCJ

Editor

Mish, can you do your polls without using twitter? I don't do twitter and neither do many of my more intelligent friends, including techies.

Bronco
Bronco

"AMERICA'S DEBT BURDEN WILL FUEL THE NEXT CRISIS"

...

Lance Roberts wrote a good article. But he didn't mention (and never talked about by "experts") that household debt situation is actually worse than statistics show. What is not counted as debt - but should be - is leasing / rent to own numbers. In the case of vehicles nearly 1/3 of all new "sales" are leases. That number alone adds over $ hundred billion / year to household balance sheet.

Bam_Man
Bam_Man

The “investors” who bought the 100-year Argentine government bond issued in July 2017 were only off by 98 years. “Smart Money”.....lol.

Bronco
Bronco

The world is suffering is partially a post QE era rise in dominance of dollar denominated debt financing."

...

Absolutely. And why King Dollar not going anywhere anytime soon. As global economy slows (like now) it will create a scarcity of $US to service offshore debt denominated in $US.

Scarcity = strength

2banana
2banana

And are now admitting to interfering with elections (or at least the desires). And are basing their monetary decisions on partisan politics.

#-#-#-#

"Under Greenspan and then Bernanke, Yellen and now Powell, rational monetary policy and acknowledgement of naturally occurring business cycles has taken a back seat to avoidance of these economic cycles at all cost. As a result, central bankers around the world are trying justify the inane logic of negative rates."

Blurtman
Blurtman

So I’ll start a bank and borrow money from other banks at a negative rate. I’ll lend the money out at an even more negative rate. If rates still decrease, I’m in business! If they reverse, you all are holding the bag. Ka-cing!

KidHorn
KidHorn

I wonder what the aristocrats have in store to kill Trumps re=election. 2020 should be a doozy for world markets.

abend237-04
abend237-04

Politicos of every stripe, from Washington to Beijing, love the fruits of Capitalism, but fear and despise the recession component of it's natural cycle.

China's first brush with recession, post-1979, occurred in the late 1980s and resulted, eventually, in the 1989 Tiananmen Square debacle.

Having almost fallen off the tiger then, the CCP apparently decided to outlaw recessions along with all other real and imagined threats to power.

To avoid recession, buying our debt and issuing their own has become their de facto economic model.

Nixon enabled it all by "temporarily" walking away from gold in 1971.

RonJ
RonJ

"Mechanics of Absurdity"

Attempting to force 1+1 to = something other than 2.