10-Year US Bond Yields at All-Time Low

[TakeAStepBack]

Third round of QE. And it's still on the table. The problem is that if the federal reserve is buying up the treasury issuance, that mucks up the reality of who is buying our monetized debt. How on earth can we buy our own debt? China had backed off until the Greece went into the toilet and now they are running from EU asset purchases.


After that, iamwhatiseem is right. We're watching the whole house of cards come tumbling down. Greece, Spain, Italy and on down the line. That leave the reserve currency in an interesting position.

 

[Leweman]

Hell yeah! that's good right? Like if gas or unemployment were at all time lows?

Well, the price of oil is falling steadily. Plus, with bond yields this low, the federal government could initiate fiscal stimulus that could lower unemployment.

Not that the federal government is likely to initiate a huge stimulus bill, but these low yields coupled with high unemployment could justify it.

Didn't they try a huge stimulus for unemployment and then had to manipulate unemployment numbers to make them appear better (though still bad) than they actually are when it didn't work?

 

[BakshisMouse]

Third round of QE. And it's still on the table. The problem is that if the federal reserve is buying up the treasury issuance, that mucks up the reality of who is buying our monetized debt. How on earth can we buy our own debt? China had backed off until the Greece went into the toilet and now they are running from EU asset purchases.


After that, iamwhatiseem is right. We're watching the whole house of cards come tumbling down. Greece, Spain, Italy and on down the line. That leave the reserve currency in an interesting position.

I messed up about the number of rounds of QE the Fed initiated. However, I think it's worth saying that it's been almost 4 years since the yield on a 10-year bond has been above 4%, even with the fluctuations of China's purchases. Something else must be up.

 

[TakeAStepBack]

I agree.

 

[BakshisMouse]

Hell yeah! that's good right? Like if gas or unemployment were at all time lows?

Well, the price of oil is falling steadily. Plus, with bond yields this low, the federal government could initiate fiscal stimulus that could lower unemployment.

Not that the federal government is likely to initiate a huge stimulus bill, but these low yields coupled with high unemployment could justify it.

Didn't they try a huge stimulus for unemployment and then had to manipulate unemployment numbers to make them appear better (though still bad) than they actually are when it didn't work?

The unemployment number as reported by the media has traditionally been the percentage of the labor force that is unemployed. The unemployment rate under Reagan, Bush Sr., Clinton, and Bush Jr. were reported as such. People who are so discouraged that they gave up looking for work are not in the labor force, and therefore not counted as unemployed.

This problem is indeed dire:

In terms of providing job-creating policies, Obama can be deemed a failure. However, I do believe that stimulus can help, especially by giving aid to state and local governments who had to lay off so many workers.

In spite of Obama's failure, I would still vote for him instead of Mitt Romney I think that Romney would go along with plans like Paul Ryan's and the rest of the Republicans, which are totally non-sensible.

 

[BakshisMouse]

I agree.

Do you agree with me or someone else?

 

[iamwhatiseem]

I hesitate to bring politics into this - but it is still important to note: That what we see in Europe today as a result of broad-based overspending, taxation and runaway social programs that were poorly planeed - this is exactly what Obama wants to change to in America.

 

[BakshisMouse]

I hesitate to bring politics into this - but it is still important to note: That what we see in Europe today as a result of broad-based overspending, taxation and runaway social programs that were poorly planeed - this is exactly what Obama wants to change to in America.

I see no reason to shy from politics in economic matters, especially in times like these.

If this crisis is about the wellfare state and deficits, why is it that countries like Sweden, Norway and the UK are not facing this crunch? They too, have significant debts and social programs. Those three countries don't use the euro, and their currencies are not in a fixed value with the Euro, either.

I think the disruptions in trade and capital flows caused by the establishment of the euro currency is causing the crisis, rather than welfare states and debt.

 

[TakeAStepBack]

Why did Greece tank if it wasn't for debt and social programs they couldn't pay for?
This is all about debt, deficits and programs that cost far more than revenue can pay for. The govt. borrows about 50% of every dollar spent.

 

[BakshisMouse]

Why did Greece tank if it wasn't for debt and social programs they couldn't pay for?
This is all about debt, deficits and programs that cost far more than revenue can pay for. The govt. borrows about 50% of every dollar spent.

Greece was fiscally irresponsible, it's true. However, other countries in this crunch, like Spain and Ireland, had lower debt burdens than non-suffering countries like Germany on the eve on the crisis. The debts and social programs are not the only causations.

 

[starcraftzzz]

Hell yeah! that's good right? Like if gas or unemployment were at all time lows?

Well, the price of oil is falling steadily. Plus, with bond yields this low, the federal government could initiate fiscal stimulus that could lower unemployment.

Not that the federal government is likely to initiate a huge stimulus bill, but these low yields coupled with high unemployment could justify it.

Didn't they try a huge stimulus for unemployment and then had to manipulate unemployment numbers to make them appear better (though still bad) than they actually are when it didn't work?

If by manipulated you mean actually showed the effects then yes. If it was not for the stimulus act the economy would of still been in recession the whole year of 2010 and 3.5million people currently would be unemployed

 

[BakshisMouse]

Well, the price of oil is falling steadily. Plus, with bond yields this low, the federal government could initiate fiscal stimulus that could lower unemployment.

Not that the federal government is likely to initiate a huge stimulus bill, but these low yields coupled with high unemployment could justify it.

Didn't they try a huge stimulus for unemployment and then had to manipulate unemployment numbers to make them appear better (though still bad) than they actually are when it didn't work?

If by manipulated you mean actually showed the effects then yes. If it was not for the stimulus act the economy would of still been in recession the whole year of 2010 and 3.5million people currently would be unemployed

I think his idea is more along the lines of:

Fudging the Numbers - Cal Thomas - Townhall Conservative Columnists

 

[iamwhatiseem]

Why did Greece tank if it wasn't for debt and social programs they couldn't pay for?
This is all about debt, deficits and programs that cost far more than revenue can pay for. The govt. borrows about 50% of every dollar spent.

Greece was fiscally irresponsible, it's true. However, other countries in this crunch, like Spain and Ireland, had lower debt burdens than non-suffering countries like Germany on the eve on the crisis. The debts and social programs are not the only causations.

Ah...but one of the reasons Germany is stronger is that it went through austerity in the 2000's.

 

[BakshisMouse]

Why did Greece tank if it wasn't for debt and social programs they couldn't pay for?
This is all about debt, deficits and programs that cost far more than revenue can pay for. The govt. borrows about 50% of every dollar spent.

Greece was fiscally irresponsible, it's true. However, other countries in this crunch, like Spain and Ireland, had lower debt burdens than non-suffering countries like Germany on the eve on the crisis. The debts and social programs are not the only causations.

Ah...but one of the reasons Germany is stronger is that it went through austerity in the 2000's.

What part of "Spain had lower deficits than Germany did" do you not understand? Also, one of the reason for Germany's strengths is its high trade surplus, supported by the euro currency. A rebalance of the European economy would see a lower German trade surplus.

 

[starcraftzzz]

Didn't they try a huge stimulus for unemployment and then had to manipulate unemployment numbers to make them appear better (though still bad) than they actually are when it didn't work?

If by manipulated you mean actually showed the effects then yes. If it was not for the stimulus act the economy would of still been in recession the whole year of 2010 and 3.5million people currently would be unemployed

I think his idea is more along the lines of:

Fudging the Numbers - Cal Thomas - Townhall Conservative Columnists

Yes conservaitves choosing to ignore 2/3 of the data the BLS publishes means they are fudging the numbers.
Here is a hint when conservatives are retatded and ignorant it doesn’t mean liberals are fudging something

 

[iamwhatiseem]

Greece was fiscally irresponsible, it's true. However, other countries in this crunch, like Spain and Ireland, had lower debt burdens than non-suffering countries like Germany on the eve on the crisis. The debts and social programs are not the only causations.

Ah...but one of the reasons Germany is stronger is that it went through austerity in the 2000's.

What part of "Spain had lower deficits than Germany did" do you not understand? Also, one of the reason for Germany's strengths is its high trade surplus, supported by the euro currency. A rebalance of the European economy would see a lower German trade surplus.

Reduce the caffeine ok? Unless we are going to write a 30 page dissertation on European economics...we all have to simplify eh?
You can't compare Germany and Spain...Germany has managed their economy better than just about anybody. They managed their recession 1,000 times better than the U.S. and anyone else for that matter.
Have you heard of their "short-term" work program? Brilliant. When companies got into trouble, rather than lay people off they cut their hours and Germany took the stimulus money and gave it DIRECTLY into the hands of those people to offset the lower wages. They didn't simply fork it over to the very people that caused it - who took it and invested it more money making programs - many outside of the U.S.

 

[The Rabbi]

the federal reserve purchased 61% of all treasury issuance in 2011. The yields are low to keep the shell game shuffling.

BEcause the Fed sets rates on the 10yr, right?

That smelled like a bag of dog shit to sell to a retard, btw.

 

[The Rabbi]

. The problem is that if the federal reserve is buying up the treasury issuance, that mucks up the reality of who is buying our monetized debt. .

Priceless.

 

[starcraftzzz]

. The problem is that if the federal reserve is buying up the treasury issuance, that mucks up the reality of who is buying our monetized debt. .

Priceless.

No its pathedic

 

[Polk]

Why did Greece tank if it wasn't for debt and social programs they couldn't pay for?
This is all about debt, deficits and programs that cost far more than revenue can pay for. The govt. borrows about 50% of every dollar spent.

Greece was fiscally irresponsible, it's true. However, other countries in this crunch, like Spain and Ireland, had lower debt burdens than non-suffering countries like Germany on the eve on the crisis. The debts and social programs are not the only causations.

Exactly. If the real story were a morality play about debts, Germany would be must worse off than Spain and Ireland.