The Fed

[Speaker to Animals]

So a burrito will cost about twelve thousand dollars. In this brave new world, can we please rename dollars to duckets?

[SuburbanFarmer]

WTF? Your brain is broken.

But Google isn't.
GB6:GOV 6 Month coupon: 0.00
GB12:GOV 12 Month coupon: 0.00

What in the hell are you looking at? https://www.treasury.gov/resource-cente ... =billrates

https://www.treasury.gov/resource-cente ... ngtermrate

[Martin Hash]

WTF? Your brain is broken.

But Google isn't.
GB6:GOV 6 Month coupon: 0.00
GB12:GOV 12 Month coupon: 0.00

What in the hell are you looking at? https://www.treasury.gov/resource-cente ... =billrates

https://www.treasury.gov/resource-cente ... ngtermrate

Don't you know how to read those? The "Coupon Equivalent" is only due to the discount, the real coupon is 0.

[Speaker to Animals]

So what happens when our paper duckets are so devalued that's actually cheaper to use them as toilet paper than to use them to buy toilet paper?

[Martin Hash]

The Fed doesn't buy Treasuries from the Open Market anyway. The 0% interest rate is only interesting for foreign buyers.

"Under section 14 Federal Reserve banks could purchase and sell eligible paper only “in the open market”; but their power under subsection (b) to deal in Government bonds was not so limited. Accordingly, the Board at all times assumed that the Federal Reserve Banks had the legal authority to purchase Government bonds directly from the Treasury" Direct Purchases of U.S. Treasury Securities by the Federal Reserve Bank

[Martin Hash]

So what happens when our paper duckets are so devalued that's actually cheaper to use them as toilet paper than to use them to buy toilet paper?

I still haven't got my point across: it doesn't make any difference as long as production = consumption. The biggest threat is sloth, people only consuming, which we have a buttload of. However, if things got bad, armed men with whips would force the sloths back into the fields, increasing productivity, and we'd be back on track.

[SuburbanFarmer]

WTF? Your brain is broken.

But Google isn't.
GB6:GOV 6 Month coupon: 0.00
GB12:GOV 12 Month coupon: 0.00

What in the hell are you looking at? https://www.treasury.gov/resource-cente ... =billrates

https://www.treasury.gov/resource-cente ... ngtermrate

Don't you know how to read those? The "Coupon Equivalent" is only due to the discount, the real coupon is 0.

I don't think that means what you think it means. https://www.investopedia.com/terms/c/coupon-rate.asp

I'm not familiar with 'coupons', but that doesn't seem to fit what you're talking about.

[Montegriffo]

So what happens when our paper duckets are so devalued that's actually cheaper to use them as toilet paper than to use them to buy toilet paper?

[Martin Hash]

What in the hell are you looking at? https://www.treasury.gov/resource-cente ... =billrates

https://www.treasury.gov/resource-cente ... ngtermrate

Don't you know how to read those? The "Coupon Equivalent" is only due to the discount, the real coupon is 0.

I don't think that means what you think it means. https://www.investopedia.com/terms/c/coupon-rate.asp

I'm not familiar with 'coupons', but that doesn't seem to fit what you're talking about.

Coupon is the face value interest rate. It's usually a 6 month payout but there's 1-year and monthly coupons too. Many bonds have no Coupon, the Face of the bond, $1000, pays out in 6 months or a year, but the bond was purchased at a Discount, let's say 5%, so the Yield would be 5% at redemption. So that's a 0% Coupon, 5% Yield bond. Treasuries purchased by the Fed have no Coupon and no Discount, so their Yield is 0.

[Speaker to Animals]

So what happens when our paper duckets are so devalued that's actually cheaper to use them as toilet paper than to use them to buy toilet paper?

They did have a super clean style in those uniforms.