and i mog everyone by the benchmark i made up

Yep. I’ve found MMT to be most realistic descriptor of money, it says that logically the state must spend or the central bank must lend before you are able to pay taxes with state money instead of money dropping from a helicopter.

You can read after it’s fine. It’s only tangnetially related

The Elgar Companion to Modern Money Theory

https://annas-archive.pk/md5/ff80a02620353f7ff665bdc2298ed2e7

Yep it creates a lot of bad incentives. For example, corps and individuals borrow in Euros or Dollars at 5-10% or whatever hoping the Central Bank will pick up the rest by maintaining crawling peg to help pay back the debt.

When it turns out the central bank can’t and the exchange rate crashes, the debts become unservicable ie currency mismatch.

So never raise rates to higher double digits especially when you have loose capital controls and fixed exchange rates.

And the typical solution of “just lower rates” becomes more complicated too since private sector is still stuck with massive foreign currency debt even if Turkish central bank lower rates. And because a lot of Lira was created due to high rates which now flood the foreign exchange market.

In case of Turkey, the >100% then 70-80% rates of the 2000s destroyed Lira credit market that makes it very difficult to switch back to low rates (that’s why Erdogans low rate experiment failed). In an economy with low stock of foreign currency debt, floating exchange rates, low interest rates wouldn’t cause runaway depreciation like what happened in Turkey.

India is one of the few developing countries which has a low interest rate (5.25%), floating currency. And now they are planning some stupid nonsense like Dollar indexed Rupee bonds to curb depreciation (not even that high) which is happening due to a supply shock it has little control over.

https://z-lib.gd/book/WAqqEkJ0AE

Chapter 21,22,23

Yes Turkish Lira deposits get you ‘free’ (in Lira terms) 37%, also the rate Government has to pay on its bonds (which adds more free money to private sector rentiers). And yep it destroys local credit and promotes foreign currency borrowing. 1 year depreciation is 16% or so but Turkish Lira exchange rate isn’t market determined, central bank maintains it with crawling peg (so it can only depreciate a few % every day before central bank steps in and buys up lira using $).

Turkish Lira is absolutely cooked. They are drawing upon all their $ reserves to keep the Lira crawling peg stable. They’ll be forced to accelerate the crawl if they don’t want to go into foreign debt.

Turkey and India are the two countries whose currencies are being cooked by this shock. Many commodity exporters including those in the AI supply chain are doing relatively fine because value of their exports rose quite a bit. But Turkey and India aren’t commodity exporters in the way Brazil is for example. There’s still a difference, India has minimal foreign currency debt, their interest rates are set fairly low. So, the Rupee will absorb most of it. Turkey depends on foreigners holding Lira for high interest rates (37% rate!), but when expected depreciation of Lira is higher than the interest, foreigners don’t want to hold it.

what’s the bsod code text thing? ive seen many old laptops can be fixed with a cheap ssd

i agree it’s why he needs to be removed from existence.

Im not American but I’ve used USPS for forwarding stuff from US from/to my own country, never had any issue. I’ve found the tracking to be reliable.

I think half of porch pirate bullshit Americans face could be fixed if they didn’t place boxes outside and required signatures.

Crime is legal

Pretending to be a third world country fiscal capacity wise by strangling yourself with fiscal rules isn’t the same as your entire debt being in foreign currency (with PIIGS, the Euro).

They can’t attack him for his Blackwater stint (i even doubt most americans in general would care) because Fox loves that about him, so they have to do all this petty bs.

Inflation expectations cause uncertainty abt Fed raising short term rates, and that shows up as lower prices for existing long term bonds.

In case the UK, the BOE is working against the Government too by dumping their stock of bonds into the market causing even more temp dislocation away from expected future short term rates.

Its happening with almost all the markets even outside the US.

But again, a policy choice, Congress can implement a permanent yield curve control program so all the points along the curve becomes a policy variable like short term rates.

And it can also make a law so Treasury’s account at the Fed can go into negative so all the accounting gymnastics of issuing Treasuries for capitalists to speculate on goes away

Tbf most of it was from when the Peso was devalued sharply.

It’ll take off like a rocket when Peso is once again forced to float or devalue because there’s simply not enough net foreign currency reserves.

Their foreign currency reserves after subtract foreign currency liabilities is still in negative. And the pretend float isn’t helping.

Turns out foreign currency debt doesn’t care about how much austerity you do. In fact, austerity worsens productive capacity which weaken forex earnings.

Yea, the 10 year gilt yields are rising because of uncertainty and the press is calling it another Truss moment or whatever (in reality it doesn’t mean much and will go down). I meant they can make it so HM Treasury can instruct BoE to buy as many gilts as needed at a fixed price to keep yields fixed, so all the fearmongering stops.

Or simply stop issuing gilts (end so called ‘full funding’ rule), and have HM Treasury’s account at the BoE go into overdraft. Either way works. To provide interest to regular people, HM Treasury can provide savings account which yield 3-4% or partly index to inflation so workers keep savings intact upto a certain amount (in extreme stress, like a war or climate change related shocks, payments may be deferred).

UK Labour Govt facing the consequences of not eliminating (or at the least controlling the yield curve) the bond market which they could’ve easily done by simply passing a law.

Ultimately, it won’t be financial market that brings down the Labour Government but party infighting.