How do you know how bad the government’s finances are? When they start considering 50- and 100-year bonds to keep the mirage going.
After a few years of Will They-Won’t They?, Treasury Secretary Steven Mnuchin confirmed to CNBC that the federal government is “seriously considering” selling ultra-long bonds.
Mnuchin told the business news network:
“This is something I have talked about over the last two years. We’re looking at issuing a 50-year bond, what we could call an ultra-long bond. We think there is some demand for it. It is something we’ll very seriously consider for next year.”
But there was light at the end of the tunnel: Mnuchin disagreed with President Donald Trump on subzero interest rates.
“If banks can’t make money, it’s hard to have a good economy,” said Mnuchin. “I wouldn’t be surprised if a lot of people started selling foreign bonds at negative rates and buying U.S. Treasurys, which would have the impact of narrowing [yield] spreads.”
It would be interesting down the road if 100-year bonds were being sold at negative yields. That would be the greatest swindle the government has ever pulled on the bond market.
“If banks can’t make money, it’s hard to have a good economy,”
What a bunch of crap. The Banksters pay us less than 3% on our savings and charge us 15% to 30% or more on credit cards, there is no way they are not making money. Loan default rates are at historic lows. I just received 30 cents this month on my savings account at my credit union, time to move my savings to a so called high yield savings account and get $3.33 per month.
That is not even keeping up with inflation. Booming economy for who? The Banksters of course.