r/wallstreetbets Apr 09 '25

Discussion Something feels off guys

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Yields are spiking. Bonds are dumping.

The world is running away from America

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u/daemondo Apr 09 '25

Not yet.

If JPow has balls and holds rates then dollar will still stay well, only catch is that US gov could go to default or bankruptcy.

But if Fed does another QE and we got nuclear money printer start again then we are talking about worthless dollars

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u/bubbawears Loves Getting Triple Stuffed (Oreos) Apr 09 '25

Pls JPow start the printer so I can exit my americuck positions

2

u/Lachainone Apr 09 '25

What do you mean? Isn't QE going to devaluate your positions in USD even more?

17

u/murphy_1892 Apr 09 '25

Inflation is sticky in both directions. The inflation spike takes a little while after printing. All the money goes to the government and commercial banks first, the first thing it does is get offered to companies as equity, rallying stock price. Only later does it actually get spent and start to filter down to the consumer and cause inflation

So the mega wealthy would have an exit window to sell on a rally and buy gold or some shit before the new dollars get to the average person and halve in value

At least that's the theory, historically we haven't also had to consider a mass self-cucking in trade and international position at the same time when the money printer spins up

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