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Re: fourdint post# 1936

Friday, 03/17/2023 8:04:51 AM

Friday, March 17, 2023 8:04:51 AM

Post# of 2368
Previous explaination should be good emough for TQQQ rising. But In addition to treasuries there is also gov backed mortgages... like the bonds, these also loses value -- why would a MREIT buy a 3% load when rates are 6%??? These securities also looses values (BTW, Time to buy MREITs is dropping interest). Then there are corporate bonds etc. It far reaching!

The FED is banking and the treasury is Gov. The Fed has to look after banks however many of the fed board are Gov appointees... hence conflict of interest, but is another issue. But the treasury has thoes 30T in bonds. Most of these are low interest, say .5 percent to interest is $150B but as they are renewed at 5% that jumps to 1.5T ... considering the treasure takes in 3T, half would go just to interest. And considering a 6T budget that's a 4.5T deficit. Doubling Taxes (not feasible) would cover the budget but still have 1.5T in deficit due to interest on debt. That's leads to printing more $ deviating the $ and, well, if the $ value is 50% less, inflation doubles. A solution is gov getting a handle on spending, real cause of inflation, but congress have never been able to do that. They claimed to of had a balanced budget during Clinton's term but that was due to SS taxes being thrown into general treasury account.

I'm not a financial advisor, THEREFOR, do not make any decisions, financial, investment or otherwise, based on any of the information, presented in any of my messages, WITHOUT undertaking independent due diligence and/or consulting a financial advisor.