๐ซAn Education๐ Series Continuation Prior Episodes Found In The Content Below โ What Are Bonds Bonds Are The Foundation Of A Debt Based Monetary System Bonds Define The Cost Of Money Over Time Put Simply Bonds Are Future Dollars
Read That Again๐
US Treasury Bonds Are Future US Dollars Deliverable At A Specified Time In The Future I.e 30 Years Henceforth
By Purchasing A US Treasury Bond You Enter Into A Legal Contract With The Treasury Wherein You Will Receive The Principle Or "Face Value" Of The Bond Plus The Rate Of Interest Specified At The Time Of Purchase
โ A Traders Role To Make Money I Hear You Say Well Yes Of Course But What Exactly As Bond Traders Are We Getting Paid For ? To Provide A Service
Our Collective Actions Expressed Through The Trading Of Bond Instruments Determine The Cost Of Money Yes This Is True Bet You Didn't Know That
Regardless Of Your Trading Size We Are All Interacting With The Free Market Our Role Is To Correctly Price The Cost Of Money When We Trade Bonds Profitably Our Roles Are Fulfilled
โ Why Else Ultra Bonds Low Operation Costs Only Pay Spread Fee Regardless Of Trade Size
As Futures Contracts Zero Overnight Cost To Carry
Operation Costs Will Kill A Trader Over Time Same As Any Business
๐งพ Essential Reading For The Knowledge Seekers๐ alhambrapartners.com/2021/11/30/if-not-flow-then-has-stock-rigged-the-flattening-curve-in-qes-favor/ ..During a period of tight money we would expect that the prices of safe and liquid instruments would rise at nearly the same time central banks respond in their predictable way to the same tight money condition. In a world of exogenous money, like the eurodollar system, the one does not cause the other, rather both are reactions to the same thing โ the exogenous money.
The fact that central banks reply in the same way as the market to tight money/deflation by buying bonds is merely the byproduct of having only one tangible tool in the kit: bank reserves..
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๐ The Story Of Nikolai Kondratiev Founder Of The Kondratiev Wave A Tragedy Of The Utopian Vision
"Nikolai Dmitriyevich Kondratiev (/also Kondratieff); 4 March 1892 โ 17 September 1938) Was a Russian Soviet economist best known for the business cycle theory known as Kondratiev waves.
Kondratievโs Paper on the Notion of Economic Statics, Dynamics and Fluctuations, published in 1924, conclusions were as follows. 1. Prosperity years were most common in the capitalist economies during upswing periods. 2. Agriculture suffered more and long depressions than did industry during price downswings 3. Major technological innovations were conceived in downswing periods but were developed in upswing periods 4. Gold supply increased, and new markets were opened at the beginning of an upswing 5. The most extensive and devastating wars occurred during periods of an upswing[11](Mager, 1987, p. 27)
These conclusions showed that Capitalism was sustainable, to the disdain of Communist officials. This was a primary reason for his execution in 1938.
Famous Austrian economist, Joseph Schumpeter credited the foundations of Long Wave Theory to Nikolai Kondratiev. He coined the term "Kondratiev Waves" (k-waves)in respect for Nikolai Kondratiev
According to the late Harvard sociologist Carle C. Zimmerman, Kondratiev was reported to Soviet authorities by a member of the University of Minnesota agriculture faculty in 1927
In September 1938 during Stalin's Great Purge, he was subjected to a second trial, condemned to ten years without the right to correspond with the outside world. However, Kondratiev was executed at the Kommunarka shooting ground by firing squad on the same day the sentence was issued. Kondratiev was 46 at the time of his execution.""