tag:blogger.com,1999:blog-9145514.post1756847074271341666..comments2024-01-08T06:15:47.638-05:00Comments on Snarktown: THIS IS BIG!!! Our bond auctions are falling apartSnarkhttp://www.blogger.com/profile/14653825247610794308noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-9145514.post-43239474737883592392010-03-02T05:23:41.509-05:002010-03-02T05:23:41.509-05:00Individual entities using bonds are not the proble...Individual entities using bonds are not the problem. A "bond" is really just your word that you will pay back the moneys someone has lent you. Summit is not brokering federal bonds or municipal bonds. They are simply borrowing money from individuals, and swearing (that is what a "bond" is, you are bound to pay it back!) to pay back with interest.<br /><br />The value of a bond depends on how trustworthy the individual who is "bound" to pay it back is. Summit is as honorable as any person or entity I know of.<br /><br />The problem with long term bonds (I do not know what maturity dates Summit is issuing) from whoever is that you have to have faith in the underlying financial structures for them to make sense.<br /><br />I have no doubt that for every dollar Summit borrows, they will pay back every dollar plus interest.<br /><br />The real question is, what will that dollar be worth when you get it back? A dollar "invested" in a 30 year bond of any type back in 1980 is now worth about 73 cents. Even if you add the 10 per cent interest to it you would have gotten in 1980 (interest rates were high), it was not a wise investment, and bonds are INVESTMENTS.<br /><br />This is why inflation of a money system is not just unwise, it is SYSTEMIC EVIL, no less than a warfare state or physical oppression. It is also a targeted evil, in that it affects mostly the poor and the elderly who have no way to keep up with the loss of purchasing power of their money.Snarkhttps://www.blogger.com/profile/14653825247610794308noreply@blogger.comtag:blogger.com,1999:blog-9145514.post-75805225249904578882010-03-01T10:27:19.513-05:002010-03-01T10:27:19.513-05:00I'm concerned for what this means for the Summ...I'm concerned for what this means for the Summit's new purchase of their structures using bonds vs traditional bank lending... God's bigger than the market for sure... but just saying....<br /><br />Laurenusafhockeyhttps://www.blogger.com/profile/14813797638014664413noreply@blogger.com