So if I'm following correctly a rising 10 year generally means the market is concerned about the economy and investing in those bonds and on the flip side if the 10 year is decreasing there is less concern over the market and those investors are picking up other assets?
Deflation is a good thing. It’s what happens naturally when you don’t print money because humans innovate and make products and services cheaper over time.
@@RDRLegend23 Yes, product deflation is a good thing! Open markets create deflation through technology and business process innovation. Asset deflation due to marker issues like capital flow problems is extremely dangerous and can lead to depressions.
Deflation is BAD, especially in terms of the governments deficit. Debt, which the government has about $36 trillion of, becomes MORE difficult to pay back in a deflationary environment because the real value of the debt increases. With that debt load, the government would start defaulting the value of the US dollar destroyed
So you can say that it was all money supply but we got the stimulus and then nothing happened for months and then there were shortages and then inflation hit so was it really the money or was it the shortages because it seems like the shortages had a much more direct impact
One big thing you left out…credit risk of the US government. investors believe trump will add mountains to the deficit and thus increasing the credit risk of the government. New debt issuance will be more costly because of the risk. Annualized interest payments for our debt is over $1 trillion.
Great details, learned a lot.
So if I'm following correctly a rising 10 year generally means the market is concerned about the economy and investing in those bonds and on the flip side if the 10 year is decreasing there is less concern over the market and those investors are picking up other assets?
This is a good explanation!
Deflation is a good thing. It’s what happens naturally when you don’t print money because humans innovate and make products and services cheaper over time.
@@RDRLegend23 Yes, product deflation is a good thing! Open markets create deflation through technology and business process innovation. Asset deflation due to marker issues like capital flow problems is extremely dangerous and can lead to depressions.
You won't find an economist anywhere who says deflation is a good thing
Deflation is BAD, especially in terms of the governments deficit. Debt, which the government has about $36 trillion of, becomes MORE difficult to pay back in a deflationary environment because the real value of the debt increases. With that debt load, the government would start defaulting the value of the US dollar destroyed
So you can say that it was all money supply but we got the stimulus and then nothing happened for months and then there were shortages and then inflation hit so was it really the money or was it the shortages because it seems like the shortages had a much more direct impact
One big thing you left out…credit risk of the US government. investors believe trump will add mountains to the deficit and thus increasing the credit risk of the government. New debt issuance will be more costly because of the risk. Annualized interest payments for our debt is over $1 trillion.