Comments by "DailyBeatings" (@DailyBeatings) on "With China and the Federal Reserve dumping Treasury bonds, yields will soar as US investors step in" video.

  1. US Treasuries are now being purchased by private foreign investors because of the high interest rates they're currently getting. According to economist Phillip Pilkington these investors, unlike purchases by foreign governments, are rate sensitive. Therefore once yields drop due to a recession foreign investors will stop buying them forcing the US trade deficit to close and US living standards to fall.
    13
  2.  @coliv2  So the US has two possible outcomes: a) Recession hits, rates reduced, foreign investor flee, and US living standards fall due to the closing trade deficit. b) Recession hits, rates the same, foreign investors do not flee, and US living standards fall due to a devalued currency.
    7
  3. Federal Reserve "prints" money and buys US Treasuries. When US Treasuries mature the Federal Reserve takes a small fee for processing and returns the interest paid back to the US Government as required under their charter. In the end it costs the US government almost nothing to service this debt. Rinse, lather, repeat...🤣
    1
  4.  @teac117  Yes, I agree. Pilkington is a pretty good macro economist and when he claims this everyone needs to pay attention.
    1