Wednesday, March 20, 2019

Ten year yield collapses

Fed says no rate hikes this year, we be doing the downturn instead. But everywhere else commodity prices rose.  It was a trade, higher prices for us,  lower yields for government.  I am not sure this helps much, but OK.  It is not clear what happens to the government price index, Congress my find this purchases have prices rising faster than commodities. I dunno, it is un-measurable until government agencies engage in cash flow accounting.

Censorship will be increasing as Trump and AOC begin melting huge chunks of ice.  We will hear about how burning more CO2 now makes it easier for stop having children later. All sort of bizarre crap will be forthcoming as economists all try to get a piece of the new deficits.

How big the deficits? Likely well over a trillion, maybe 1.5 trillion for a couple of years, but eventually sane minds will break through the fog and we get another tax and sequester.

Among the Keynesians, their theory says specifically hat the little guy has to be cheated for a while, hence the censorship designed to preclude a default.  Unfortunately, it won't work.  We have a class of voters who are clearly aware of the recession cycle, and clearly aware that Keynesian stimulus will hit them for a lifetime of debt payments.

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