Consequences of T-Bill Deluge

[@100xx]

Summary : The video discusses the role of foreign investors in the US markets and the challenges they face. Before the pandemic, foreign investors showed interest in buying US government bonds, equities, and credit. However, the current environment poses difficulties for foreign investors due to high hedging costs. For example, a Japanese investor looking to buy 10-year US government bonds would face negative yields after accounting for hedging costs. The passage also highlights the upcoming challenge of replenishing the US Treasury, as significant amounts of issuance are expected in the next few months. The question arises as to who will be the incremental buyer for these Treasury bills, especially considering the supply of government bonds in other regions. The passage further discusses the impact on liquidity in the marketplace and potential implications for banks' lending capacity. While some believe there will be natural buyers for T-bills due to attractive interest rates, others anticipate frictions and potential liquidity issues as the Treasury General Account is rebuilt. The impact on liquidity is expected to affect both the reverse repo facility and bank reserves, potentially impacting credit creation and the overall economy.

[@8088I]

Might also be the magic that finally cracks this (Global) Inflation nut, if some Liquidity is sopped up by Local & Global Gov Bonds, the World over.

[@San_Dee]

That’s gotta be AI generated. Looking forward to there being AI generated summarizations of all videos in the near future. 👍🏼

[@jake4024]

Thanks friend

[@MarekKolenda-cr8vr]

Smart man and woman

[@MP-zf7kg]

@@San_Dee maybe. most AI is garbage, as in garbage in, garbage out. bard, for example, is constantly wrong.

[@christianduval9067]

If is no buyers for the T-bills....the rate will be higher......that will be a good news

[@dbehr4869]

Will you guys STOP interrupting speakers and let them finish!

[@RWROW]

Amazing that the expert is so thrilled that Treasuries might attrack interest rates in excess of the inflation rate (before even considering taxation). Talk about being trained to be used to financial repression!

[@uturniaphobic]

I don't think there's taxes on federal bonds. I remember hearing that in a class I took years ago.

[@RWROW]

@@uturniaphobic Per Investopedia: "The interest from Treasury bills, notes, and bonds is taxable at the federal level but not at the state and local levels. "

[@praveenspike]

In the area of 32 trillion debt and raised by another 4 trillion with a repayment of only 1.5 trillion, all this with a lower credit rating. The only way is to make the repayment with at least 4-5 trillion else the default is still on the horizon, else its inevitable. POTUS needs a better admin for the policies.

[@jwass321]

Hard landing

[@leonie563]

It's a burning platform. The last New York Fed Mtg sent Treasurers back white as ghosts because 1) war planning 2) digital is go Thunderbirds Go! There goes the budget. They are just window dressing, minding the store now. Societies are about to collapse so strap in

[@Coco-yw9nf]

Hope so

[@kensmechanicalaffair]

That was fairly obvious. A dummy could figure that out. I'm glad a handful of people are still making merry, like they can't be touched...Keeps the team spirit alive...

[@johnmerlino7011]

Stop manipulating the Stock Market and let it go through a major correction, that will have folks buy Treasury Bonds, as they liquidate their overvalued stocks.

[@PelosiStockPortfolio]

Were you investing in 2007-2008 when they were manipulating stocks?

[@kensmechanicalaffair]

**No**

[@carefulconsumer8682]

Great informative show.

[@bleacherz7503]

Do foreigners pay federal taxes

[@kensmechanicalaffair]

Not illegal ones, no.

[@JoePieczynski]

Lets not kid ourselves, the fed is going to print to fill the gap. The question is, how much pain will they let happen

[@eljefe5858]

QT+no buyers= depression. FED buying= hyperinflation. Choose ypur poision

[@danielhutchinson6604]

What if they give a T-Note sale and nobody shows up? The Saudi Guys took a few billion and parted that in a BRICS Bank. It seems to be a new Marketplace?

[@dond668]

I agree with Erin. The market doesn’t. Small caps are rocketing, when they are effected the most when liquidity becomes an issue. Also, the Treasury Bond yields will likely increase so why is TLT having a good day?

[@dond668]

One day later, TLT is having a really bad day, yet bank stock are way up and small caps are way up.

[@8088I]

Might also be the magic that finally cracks this (Global) Inflation nut, if some Liquidity is sopped up by Local & Global Gov Bonds, the World over.

[@evelynramos445]

Gov insured known for treasures. Inflationary gov via mentioned by Davos.

[@iann.152]

They should exempt individual US citizen from Federal taxes when they buy T-bills to encourage ordinary Joe to invest... or the first $10k interest is exempt...

[@larrydemonte2218]

Now you see why the Fed is going to have to lower rates, you can’t try to issue debt rising interest rates

[@TALLXXL]

Nice

[@evelynramos445]

Long termers confident on US as innovation caps rise

[@brothergod6633]

All this in the final months of the LIBOR expiration 🙄

[@buenafe]

Those arms? Prosthetics?

[@rui-9-cs315]

nice

[@satya_uk]

We have a lot a jargon in economics, rather than normal language of someone saying, Oh we are deep S#@* 😅😂

[@Anthony-dj4nd]

She looks sick

[@disneydollars]

💱💳

[@chrischoir3594]

you can't get a money market for more than t-bills or banks CDs she is FOS !!!!!

[@AR-rn8ok]

We could just cut the billionaire tax loop holes from the trump era and that would help resolve most of our deficit. Then maybe pass a law that all tax cuts must be paid for when they’re passed, and not passed down in the deficit for the next guy to deal with. That may also better help with inflation than forcing our poorest citizens to lose their jobs and drain their savings.

[@DsonicJ5672]

I say we just make every American pay the 90k per citizen. It would help pay the debt too. Sorry 94k per person

[@SouL1Jacker]

You are utterly delusional

[@bleacherz7503]

Cute

[@mrcmid9132]

💡 when interest rates hit 20% return is when I might think about investing in bonds. Lmao 🤣 🤣

[@AH-fm7rj]

Who will buy the Bonds and Bills? Answer: Apple is sitting on 200B$ cash. Google is sitting on 160B$ cash. Buffet is sitting on 100 B$ cash pile. Microsoft is sitting on 130B$ cash pile. Amazon is sitting on 64B$ cash pile. This is just a very short list, not including oil companies, financial institutes and so on. There are lots of cash in the system that will not say no to 4% easy money yield.

[@eljefe5858]

Not with equeal or more inflation+ countries giving ×2. Unless there is another crisis ( and even then I have my douts) U.S is screwed. EU either way is screwed also. Sayonara!!!

[@wally5077]

Those "cash" piles aren't actual cash but stocks and bonds.

[@AH-fm7rj]

@@wally5077 Read their balance sheets. It is not like this that they can lie bout their balance sheets

[@wally5077]

​@@AH-fm7rjHave you read anything? Per Apple's own cosolidated statements, as of Dec 31, 2022, they have only 20,535 million of cash and cash equivalents (which includes t bills) and total current assets of 128,777 million. Nowhere close to the 200 billion "cash" you say

[@wally5077]

​@@AH-fm7rj114,095 million in non-current marketable securities, 30,820 in current marketable securities. Bulk of their liquid assets, no matter how we count it, is definitely not cash.

[@peterscherling1141]

Needs to ban the sales of tbills to other countries especially brics countries.

[@spaceballs72]

Then you pretty much block 70% of the market from allowing you to borrow any money. Who's gonna buy your useless bonds then?...everyone know you Americans can't pay shit...

[@singularity-6339]

Fed reserve will be the major buyer on those new T-bills. Brics countries are a net sellers.

[@spaceballs72]

@@singularity-6339 If the fed buys those t-bills and buys them quick. Watch inflation go weeeeeee. I don't see any other alternative.

[@chiaweinam]

no need to ban. They are already de-risking from USD and gradually dumping US debts

[@singularity-6339]

Fed has already tightening it's M2 money supply but US is spending like crazy ( Budget deficit is well over a trillion dollars) which makes fighting inflation almost impossible. Reputation of USD is now being questioned globally, it's just a matter of time before nobody cares.

[@timetothink6150]

well, one week on and zero sign of any of this....

[@americandosx1815]

Catfight...................