merjet 74 Posted March 13 Author Report Share Posted March 13 (edited) 1 hour ago, Boydstun said: David Brooks From Brooks' article: "I’m worried about a world in which we spend borrowed money with abandon. The skeptical headline on the final preretirement column of the great Washington Post economics columnist Steven Pearlstein resonated with me: 'In Democrats’ progressive paradise, borrowing is free, spending pays for itself and interest rates never rise.'” I guess that Brooks believes this is not limited to Democrats. Many Republicans -- Donald Trump for sure -- believe likewise even if what they regard as "progressive" differs. This prompts some speculation about future interest rates on U.S. federal government securities. Traditionally U.S. federal government securities have been the primary source of collateral for financial derivatives (futures, swaps, options), many loans, and required margin for investment accounts. Their use as collateral has thus upped the supply and demand for U.S. federal government securities. Something that began recently is use of Bitcoin for collateral (link). The extent of that now is very small. However, if it grows significantly, it will lessen the supply and demand for U.S. federal government securities. I suspect that will lead to an increase in interest rates on U.S. federal government securities. Like I wrote in my blog article: "Of course, reaching 3% or 4% instead of the current 1% implies the federal government's interest payments would triple or quadruple, and this would put pressure on other federal government spending." Edited March 13 by merjet Boydstun 1 Quote Link to post Share on other sites
merjet 74 Posted March 16 Author Report Share Posted March 16 Cryptocurrency outlook #5 Quote Link to post Share on other sites
merjet 74 Posted March 18 Author Report Share Posted March 18 Cryptocurrency primer Quote Link to post Share on other sites
merjet 74 Posted March 20 Author Report Share Posted March 20 Stablecoins Quote Link to post Share on other sites
merjet 74 Posted March 22 Author Report Share Posted March 22 Atlanta shootings were "hate crimes"? Quote Link to post Share on other sites
merjet 74 Posted March 24 Author Report Share Posted March 24 George Orwell as a Public Choice Economist? Quote Link to post Share on other sites
merjet 74 Posted March 27 Author Report Share Posted March 27 Bad news bias Quote Link to post Share on other sites
merjet 74 Posted March 30 Author Report Share Posted March 30 Thomas Reid's theory of ideas Boydstun 1 Quote Link to post Share on other sites
merjet 74 Posted March 31 Author Report Share Posted March 31 (edited) Bitcoin and Walmart | Federal Reserve and home prices Edited March 31 by merjet Quote Link to post Share on other sites
merjet 74 Posted April 1 Author Report Share Posted April 1 Bitcoin and freedom Quote Link to post Share on other sites
dream_weaver 603 Posted April 2 Report Share Posted April 2 On 4/1/2021 at 8:12 AM, merjet said: Bitcoin and freedom *** Split separate discussion into Bitcoin and Cryptocurrencies *** Quote Link to post Share on other sites
merjet 74 Posted April 6 Author Report Share Posted April 6 Medicare Advantage analysis | Federal spending spree Quote Link to post Share on other sites
merjet 74 Posted Friday at 12:13 PM Author Report Share Posted Friday at 12:13 PM NY Times spreads ITEP falsehoods and propaganda Quote Link to post Share on other sites
merjet 74 Posted Monday at 12:19 PM Author Report Share Posted Monday at 12:19 PM John Dewey on rights and government Quote Link to post Share on other sites
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