Some institutiojnal buyers want the safety of Treasury bonds over dumping all their cash into The Big Casino. Raising interest rates means more of them buy govt. bonds; lowering interest rates means they borrow Fed money instead, since it means negative interest rates re inflation. It isn't rocket science. Waiting to see what the FEd is going to do re interest rates is temporarily uncertainty, especially for foreign govts. and corps, hence its effects on the markets. Negative interest rates mean free money for the big prime borrowers and looser loan requirements and more money going out, to mortgage lending, corporate spending, etc., i.e. corporate welfare.
de-dollarization
- Thread starter goat
- Start date
Some institutiojnal buyers want the safety of Treasury bonds over dumping all their cash into The Big Casino. Raising interest rates means more of them buy govt. bonds; lowering interest rates means they borrow Fed money instead, since it means negative interest rates re inflation. It isn't rocket science. Waiting to see what the FEd is going to do re interest rates is temporarily uncertainty, especially for foreign govts. and corps, hence its effects on the markets. Negative interest rates mean free money for the big prime borrowers and looser loan requirements and more money going out, to mortgage lending, corporate spending, etc., i.e. corporate welfare.
Phyllis Diller
Was it me?
so its buying bonds versus borrowing the cash.
Phyllis Diller
Was it me?
people unaccustomed to unlimited borrowing ability are not accustomed to this particular conundrum.
Basically, yes. All depends on which is the better deal. If you're big enough, the Treasury will hand you free money, so it's not like they actually need it when they borrow it. And with the limited liability scams, they never have to pay it back when they get upside down on their spending sprees and lax retail loans.
people unaccustomed to unlimited borrowing ability are not accustomed to this particular conundrum.
The biggest corps have current P/E ratios on the 40's and 50's. Lots of margin borrowing speculating on just Nvidia alone.
AI Overview
Nvidia's P/E (Price-to-Earnings) ratio is approximately 51.33 as of late August 2025, based on the Trailing P/E (TTM) from Yahoo Finance. This ratio indicates that investors are willing to pay about $51 for each dollar of Nvidia's earnings over the past 12 months.
That one company alone has a larger cap than the entire Russell 2000.
AI Overview
Nvidia paid a dividend of $0.04 per share in the calendar year 2024 and is expected to pay at least $0.03 per share in 2025, based on dividends declared so far
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Ludicrous. The Top 7 are bound to go bust and wipe out a lot of fake 'equity', which will be good news for the lower priced stocks when all that gambling on the AI bubble bursts.
Phyllis Diller
Was it me?
zombie corporations.
Phyllis Diller
Was it me?
this is why we can't have nice things.
Just for grins, check out why the Feds stopped using GNP as a measure of economic activity and changed to using the GDP scam. That is why foreign banks like the Japanese don't go by FEd claims of what our economy is really doing and calculate their own U.S. inflation rates.
Phyllis Diller
Was it me?
Into the Night
Verified User
Works for me.
Interest rates for bonds is set by the government issuing those bonds and market forces.
Don't think so. Crypto requires the internet to make a transaction, which isn't available everywhere, and the blockchain problem with Bitcoin is become acute. Further, crypto requires technical knowhow to set up your wallet, and most people don't have it.
I predict a return to gold and silvler commodity currency. It's been trusted for thousands of years for a reason.
And those are still the hard money of choice in many countries around the world.
Into the Night
Verified User
One or two, but the rest of the world is on fiat currency, and all of it is losing value.
The world has never been here before.
There is a huge grey economy, and one reason for the increase in gold prices relative to the dollar is central bank purchases of gold, so there still is a gold standard at work, you just don;t see as much in the U.S. at the lower levels is all. I guarantee you you can go into Korean, Indian, or ME markets and stores here and do business all day using silver and gold.
Debasing coins was common in earlier times, it's the same thing as using the paper money we have today, and served the same purposes.
proud PETA member
Verified User
Full discloser, I'm a digital ignorant. Can someone explain to me what this is?
Just the latest scam to milk people out of money; like the tulip mania, AI stocks and every other bubble in history. Another giant con, is all. Stick 'AI' or 'crypto' in front of something and watch thousands of morons drive the price sky high. It's a matter of timing; just try to guess where to jump off the idiot train and cash out. Don't be last.
IBDaMann
Well-known member
Nope. It will remain exactly as it is, just with the addition of cryptocurrencies that will come and go.
Fiat money is the only kind that can survive. You need to brush up on it.
IBDaMann
Well-known member
Sure. I'm here for you.
You know what accounting is, yes? You know what digital accounting, like Quickbooks is, correct? You know what encryption is, yes?
Well, imagine a digital accounting system for a closed operation, say, for one particular bank, involving all the accounts at that bank. The bank accounting system begins with a "genesis block" (describing initial parameters of the operation) which is published for that community. Therafter, every transaction is "hashed" (using encryption) into a "block" and added to the "chain" in the order they occur, such that anyone can examine the entire chain of transactions and verify by the hashes that there has been no tampering This allows everyone to have a software application that they can run whenever they wish, to back chain through and verify the hashes and be confident that everything is on the up-&-up.
What Into the Night is forthwith referring regarding Bitcoin's block chain problem has to do with its architecture which serves as a limiting factor that throttles a host of necessary activities:
Scalability
Bitcoin processes only 3–7 transactions per second. As usage grows, this causes congestion, high fees, and slow confirmations.
Energy Consumption
Bitcoin’s Proof-of-Work system requires massive computational power, leading to high electricity usage and environmental concerns.
Security vs. Incentive Decay
Bitcoin relies on miners for security. As block rewards decrease over time, miner incentives may weaken, risking network security unless transaction fees rise.
Regulatory and Tax Complexity
Bitcoin is treated as property in many regions, triggering capital gains taxes on every transaction. This complicates everyday use.
Volatility and Public Trust
Bitcoin’s price fluctuates wildly, making it unreliable as a stable currency. Combined with risks like cybertheft and scams, this undermines public confidence.
Don't be afraid to come to me with the hard stuff. Enjoy!
Phyllis Diller
Was it me?
IBDaMann
Well-known member
Your powers of observation underwhelm.
... and all people die ... and all empires crumble.