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I agree that Bonds are starting to becoming unsafe but banks are forced to invest into them. Inflation is creeping its way into everything. The only way out is balancing the budget, inflation, or monetary collapse, and a new fiat system is issued to replace the old currency. 1. Is a long term fix but has short term costs, congress wants to reap the benefits now, fixing the country takes serious political risk to them because everyone wants government handouts. 2. Inflation is the most convenient, kick the can down the roads, gas light people, tell them they're crazy if they think everything's unaffordable, get more people on government programs, forever expand the debt, and the government supporter class, keep people in perpetual slavery, while making your corporate friends wealthy. 3. The only reason they would abandon the dollar is in order to fully digitize it into a CBDC.
2025-09-06 19:19:04 from 1 relay(s) ↑ Parent 1 replies ↓
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2+3 will happen. Export inflation thru stablecoins. Not abandoning dollar tho. Long bonds have asymmetry due to passive buying mechanics… and yes due to the power of forcing commercial banks to buy them. When they start lowering benchmark rates watch out. When they issue lower rate long end it sets off a chain reaction. Thats why i like a tranche of RFIX with my gold/btc as my “risk”. Not financial advice.
2025-09-06 19:31:28 from 1 relay(s) ↑ Parent Reply