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345 sats \ 1 reply \ @justin_shocknet 25 Jun \ on: Ed Dowd Warns "Deflationary Scare" Will Prompt Fed Panic econ

Wouldn't count on it, remember that Trump installed Powell and everything is WWE levels of fake.

Leaving rates where they are is doing 2 things:

  • A larger percentage of "new" money goes to savers when interest is paid on treasuries, not to imported garbage financed on a HELOC
  • As other CB's have to cut rates, because their economies suck without the US subsidizing them, the higher relative yield on our debt contributes to a dollar funding squeeze "dollar milkshake" bubbling underneath (US deals with its own sovereign debt crisis by making it a world-wide problem)
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17 sats \ 0 replies \ @optimism 25 Jun

I love this take, especially:

US deals with its own sovereign debt crisis by making it a world-wide problem

This is why for example China is so eager to denominate contracts in anything but USD; they don't have any other choice than to accept any problem the US throws at them as their own if they don't succeed in that move.

PS: I'm considering building a filter on zerohedge like /Authored\sby.*\svia\s.*/ because this post too feels like "Tyler Durden" is making too many deals with internet marketer scammers; the article feels much like what i just described in #1015588, including the PDF download link at the bottom.

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