/biz/ - Business & Finance

[Anonymous No.54944866]

Redpill me on Treasury Bills, what's the catch?

[Anonymous No.54945402]

an IOU
Issue a T-Bill (Bond) in exchange for bank notes, promise to pay back notes at yield.

Then people post their T-Bills as if it is good as cash in stock accounts and buy stock, using T-Bills as collateral.

It is just debt that pays interest.

The fact rates are rising so fast is telling people are losing confidence and the fact Credit Default Swaps (CDS) are higher for US debt than fucking Mexico is saying people are betting and buying swaps (insurance) to cover an expected default.

[Anonymous No.54945427]

>>54944866
The catch is everybody’s greedy and wants a better return

[Anonymous No.54945496]

>>54944866
I'd like to know too. I think the instabilty, in the yield, especially the spiking higher part, is a serious sign that the monetary system is unstable. The spiking one month yield alone makes me think they might actually not raise the debt ceiling and default on the national debt much more than all the news stories.

[Anonymous No.54945507]

on the other side of this Biden will be known for his new diet, helping millions of people drop millions of pounds in weight through a new strategy called hunger...

There will be the normies who have 0 net assets and any and all wealth they have will be in dollars becoming more and more worthless every day.
To combat this worthless dollars and run-away inflation rates will continue to rise and that means things that are tied to those rates such as auto loans, mortgages will be harder and harder for normies to cover thus those assets will be in a fall/collapse. While real items such as fuel, copper, wheat, eggs, etc. will cost more and more so prices will increase. It will be epic Hyper Stagflation

Then there will be people who saw this, and betted against this, and prepared, they bought insurance. Gold and Silver as wealth outside this system (Sure speculate on BTC and crypto but do not bet the farm) Just as other commodities as mentioned above rise, and the fear and panic set in flood gates will try and enter the precious metal space.
Gold = insurance
Silver = Greed as Ratios will return back to God's ratio of 9:1 and out perform Gold

[Anonymous No.54945564]

>>54944866
What is the value of a asset that fails to perform/default?

......................... ZER0

We are close, maybe weeks, maybe months, maybe a year?
Personally I thought they were done for in 2020 with the COVID printing.

The devil knows no new tricks, expect mass printing and devalued dollars.

Buy things you need now with 2023 Dollars, or things you need later with 2024 or 2025 Dollars.
Expect a rise in price on things you will need, and a collapse in price on things you do not.

[Anonymous No.54945645]

You are locking your money up with an adjustable rate which means as soon as the fed pivoots and panic cuts rates to zero you will wish you had a longer term

[Anonymous No.54945664]

The catch is it going to 0

[Anonymous No.54945825]

>>54945645
>as soon as the fed pivoots and panic cuts rates to zero you will wish you had
GOLD AND SILVER

[Anonymous No.54946891]

>>54944866
That graph is why every bank is going to fail.
>Be me
>Bank
>Invest in t bills that pay less than inflation
>Fed Jack's interest rate
>T . Bank cant cover

The dollar is going to collapse, the only thing that will prevent it is willpower.

[Anonymous No.54946925]

>>54945564
This is the right answer. By hard things you will need.
Inflation can only stop by burning the money supply.
Not decreasing demand, not putting people out of work.