[fshbbdssbbgdd]

The 30 year treasury rate is 2%, which is extremely low compared to historic rates. A lower rate indicates higher demand for the bonds. In other words, we seem to be at very low risk of being unable to find someone to buy the bonds.

In fact, it’s impossible, since the treasury can always buy them. Unlike New York City, the US government issues the currency as well as bonds denominated in that currency.

[tryptophan]

Interest rates dont mean anything anymore(ie you cant draw any conclusions about the risk the market is pricing in). The entire credit market is manipulated by the FED.

The fed owns like 20% of all federal debt, bought with printed money. Recently they have also been printing so much that they eat up >50% of bond auctions.

[imtringued]

Thank you. Now I am fully convinced that "printed money" and "money printing" is a meaningless term that means absolutely nothing.

Before that I assumed that there was some logic behind the term but it is clear that there isn't.

[Gustomaximus]

There is some logic. It's heading towards MMT

https://en.m.wikipedia.org/wiki/Modern_Monetary_Theory

Many people misunderstand what MMT actually is, cherry pick parts and call that MMT. It's interesting concept, I dont think it will work but many do.

[syshum]

>>since the treasury can always buy them.

Inflation will have a say in that... Zimbabwe here we come.

I cant wait until I need a virtual truck load of dollars to buy a loaf of bread because the "treasury can issues the currency"

[quickthrowman]

> In fact, it’s impossible, since the treasury can always buy them.

Minor correction: The US Treasury issues bonds, the Federal Reserve Bank is the buyer.