10 Year United States Treasury Yield
 

OMG, the 10 year UST is yielding a whopping 2.75% and the sky is falling because of high interest rates. News Flash, in September of 1981 the yield was 15.82% and that quickly brought our nations last bout of hyper inflation under control. The Federal Reserve needs to learn from history and finally do something meaningful to fight inflation.

I totally agree, but they want to punish savers and reward people who borrow and spend as much money as they can.

& 5% mortgage rates.............there will be no sky left.

Needs to go higher. Amazing how savers were punished for so long.

My view-looking at what we are being fed it makes NO SENSE. That is clear if we DARE to see it. Our CPI, consumer price index is roughly 8%. We pay that with after tax dollars. For us to be EVEN, the interest on a 10 yea treasury would need to be roughly 12%.

Our national debt is roughly 30 trillion dollars. The interest on that 30 trillion, I read somewhere is 1.5 billion a day. We allow ourselves to pretend that we comprehend these numbers. If, it currently costs the nation 1.5 billion a day in interest on the debt at treasury interest rate below 3%, truth the math when we talk billions let alone trillions, escapes we HUMANS. I believe since 12% is four times 3%, it is valid to take the 1.5 BILLION per day and multiply that by 4 so 6 billion a day in interest on our national debt.

I am thankful that it is not my job to find a way out of this. Far as history, this does not end well.

Money, is a concept. We talk about dollars. Unlike say a gallon where we know ounces in a gallon etc. Our obvious current question is how many dollars to buy a gallon of gasoline. Food to eat. A roof over your head.

Look at the national debt clock, it is posted on the internet. Truth, I've not looked in a while. My numbers are old, it is worse now. I DO NOT HAVE THE COURAGE TO LOOK.
What it showed, the average American has 10,000 in saving and owes 85,000. If, we use the CPI, consumer price index as the rate of inflation-call it 8%. Real money value.
On the 10,000 in savings he loses (10,000 x.08=) $800. On the 85,000 owed the debt is devalued by (85,000 less .08=) 6800.

Our country and much of the world is playing with matches in a dynamite factory.

no surprise....our government tends to be reactive...not proactive when it comes to the economy

I series bonds
 

I series bonds purchased between May and October are 9.62%. An individual can only buy $10,000 worth per year. So with spouse $20,000. Every little bit helps. Individual - Buying Series I Savings Bonds

Just ask them, they are doing something. They’re printing another Trillion dollars in deflated value currency.

It works like the price of gas at some point $3 a gallon will be cheap gas. I bought a home back at that time assumed the first 5% took a second at 17% and the seller carried a third at 12%. Whoever is in the White House if we get there will be blamed for crashing the Realestate market.

They can't raise rates this time around. Why? Because of $30+ trillion of debt. It's a never ending cycle. Inflation will get even worse and worse as they would then have to print even more $$ for debt service. The US dollar is doomed to complete destruction. We are past the point of no return. It is no longer possible to fix this. Everything from SS to medicare to food stamps will evaporate in a sea of worthless cotton paper.

You think crime is high now? Wait until people can't eat. We're stockpiling food and ammo. Eventually the US dollar will buy neither of those.

We each bought an I bond paying 9.6 percent and another as a gift. No limit on number you can buy as gifts.

Paul Volcker raised the rate back in 1981 to over 20% much higher than the inflation rate to get us out of the Carter recession. Don't expect the same to get us out of the Biden recession.

Think the price of gas is high now, wait till you see the Presidents new proposed budget. 11 (ELEVEN) new taxes on gasoline alone. Now, hopefully congress will never accept this but gas prices are at a low compared to next year.

And who was in power in 1981? Asking for a friend.

Treasury Rate
 

And who was in charge in 1981? Asking for a friend.

I spent my entire career in finance. Frankly, I don't think our Fed Chairman is very bright. He may have a lot of book learnen, but he certainly has not made many observations about how inflation starts, how self-reinforcing it can be, and how to stop it. Our political leaders do not seem much better.

Paul Volcker.

What does 15 % interest rates do to home values ? Is that good for Americans to lose value of their homes ? The federal reserve is not a form of our government and has no constitutional powers , but here we see they can put a lot of homeowners underwater on their
mortgages . Veterans could be hurt due to 100% financing of a purchase of a homes appraisal.

Ibonds thru treasurydirect.gov pay more: “ For the first six months you own it, the Series I bond we sell from May 2022 through October 2022 earns interest at an annual rate of 9.62 percent. A new rate will be set every six months based on this bond's fixed rate (0.00 percent) and on inflation.”

15% Interest
 

We have a president who won’t stop spending and a Congress that won’t stop spending. It’s going to take a war or a very unique occurrence to make this work. Maybe aliens will land and want to trade gold for carbon. oQUOTE=Marine1974;2099087]What does 15 % interest rates do to home values ? Is that good for Americans to lose value of their homes ? The federal reserve is not a form of our government and has no constitutional powers , but here we see they can put a lot of homeowners underwater on their
mortgages . Veterans could be hurt due to 100% financing of a purchase of a homes appraisal.[/QUOTE]

It's never a good idea for anyone to buy a house with 100 percent financing. The VA loan program does a disservice to our military members by encouraging them to make bad financial planning decisions. It is touted as a benefit, but it is not a benefit.

I'll take the near zero yield with zero inflation and low gas prices .. WAIT .. we had that for a while and then 80 million morons decided they could do better !

[/QUOTE]

The reality-it has always been so. People, all people say tax him, not me. Cut him not me. As far as vets and 100% financing of a home being hurt? If, they have no equity in the home and the value falls, they lose NOTHING. Current mortgage rate is like 5%. Yes it is higher than it WAS. However, the CPI consumer price index is 8%. The interest rate is less than the rate money is losing it's REAL value. A home, there is no other investment that is legally as highly leveraged as a home.

People like to complain. Perhaps, a good thing, I grew up in poverty. I worked hard, I saved hard. Money doesn't buy happiness but, It does make misery a lot more fun.