LIVE! The U.S. Treasury Is BANKRUPT! The U.S. Government Is BANKRUPT! America Is BANKRUPT! Mannarino
From Greg M
Lions and friends. THANK YOU FOR SUPPORTING MY WORK!
PLEASE SUPPORT MY WORK. Choose either PayPal, Click: https://www.paypal.com/paypalme/GregoryMannarino
Or Use STRIPE, Click: https://buy.stripe.com/28o15F82aeQwcCc7ss
I also LOVE Cryptocurrencies! WANT TO SUPPORT MY WORK WITH CRYPTO? Please click: https://commerce.coinbase.com/checkout/81ce40ab-37d8-45f9-af89-61831978c6eb
They aren't actually bankrupt, if they were the producers wouldn't continue producing at a loss.
If you look carefully at the balance sheets you'll notice that certain assets have not been marked to market in terms of value. Importantly, this includes gold, and this is how they can claim they are not and have never been bankrupt/insolvent.
That said, the gold once it has been marked to market, is getting close to the insolvency point, given debt-service increases from running a deficit budget for decades; which the government must pay.
The moment they exceed that and default, savvy businesses will move operations or shutdown operations for more stable waters. The only stable store being currency backed by gold/silver/commodities.
From that point forward, its a steady spiral of shortages and business concentration increases until none are left and they get nationalized which is about where we are at with the primary banks in the banking sector today, Then usually its often a combination of deflation or hyperinflation taking hold and no way to react quick enough for policy to do any good as a result of hysteresis.
This is why rational economists back in the 30s-50s were so against inflationary policies, but they were drowned out with promises of benefits over the years such as social security, pensions, and universal healthcare; all at the expense of future people who had no say or representation (because they were not born yet). Regardless of their individual opinions, not forcing repeals and accepting benefits of this kind make every person doing so complicit in breaking the fundamental social contract.
These cycles may take a lot of time to build up before failure, but eventually the bill comes due, and the further along it gets the more it snowballs until you can no longer change the direction.
This is where the latter part of the silent generation, along with the boomer generations seriously erred. All it takes is one irrational generation filled with hubris, to take freedom away from future generations.
Why is market liquidity so important? Price volatility effects has serious consequences for the entire economy. If the market faces a calamitous shock, treasury sellers would seek to cash out and unavailable to find any buyers the market could grind to a halt and would freeze all other markets. This would cause the Fed to intervene. Treasuries with shorter maturities tend to carry less risk and can partially avoid market turbulence. It’s the longer duration treasuries that would be within full scale turbulence because with the volatility how would these bonds be priced?
Liquidity will also be affected by large banks and investment firms that no longer have room on their balance sheets to purchase more treasuries.
Stay short. Go 30 days and keep rolling the interest forward taking advantage of compounding.