US Silicon Valley Bank management selling (purchased during record low interest rates since WW2) US bonds... then after a period of US bond market trading higher interest rates, selling of US bonds exposes bond trading scam.

     Financial institutions whom purchase bonds during low interest rate periods with intentions to hold bonds for bonds entire interest payment period until expiry date indicates a conspiracy against financial institution investors.

     World retirement scheme investors’ financial institutions management buying bonds, while bond interest rates fall, financial institution balance sheets show significant profits as higher yield bonds compared to newly issued lower yielding bonds, funds gain profits, the difference interest rate yield for every year remaining on held bonds.

     When interest rates rise all previous financial bonds capital gains on held bonds are reversed. Gains turn into loses, so when SVB sold held bonds to use cash to supply depositors with cash funds, the reduced value of bonds purchased during record low interest rates compared to existing bond prices newly issued interest rate yields shows the ignorance of financial institution management or a conspiracy to send many financial institutions into bankruptcy as management had long ago bailed out of investments into something else more profitable, such as short selling.

     Bonds, when to buy and when to sell are easy to understand, yet I state working class education traumatised human thinking abilities whom brains are conditioned to remember known short statement knowledge rather than to associate and calculate new knowledge, human brains are more tuned to fight or flight inner brain function protect damaged hippocampus from more damage awareness pain behaviours.

     Finance reporters may mention: bond sell offs; reduced yields; higher yield bond issues… yet fail to explain bond holder loses while newly issued bond yields continue to rise.

     I personally purchased CBA bank 10 year bonds in mid 1994, yields after a short period of 6%, as bond yields increased I managed to invest at 9%, at best in September 1994 at 10%. Sold all bonds in 1998 at 6%, due to constant media news readers speculation statements that interest rates were heading up that previous 6% interest rate was believed to be the lowest rate. Bond rates eventually achieved 4.5% in 1999.

     For every year remaining on CBA purchased 1994 10 year bonds promised bond yields, the differences between 1994 bond interest rate yields to 1998 6% yields times 6 years remaining to maturity, on cashing in bonds I received au$32,000 which was placed in a superannuation fund to reduce taxes.

     I mentioned the above win-fall to my retired school principle who had no idea what I was talking about, his sense of not knowing memories fight or flight reactions persisted in telling me I was wrong, yet as I persisted using my stated win-fall au$32,000 he had to understand. As now SVB bond selling loses were discussed he makes a quick comment that my version of bonds weren’t the same as his version of beliefs of bonds.

     When taking out a bank term deposit, CBA bank teller goes through a statement to which I must sign a statement of understanding the terms of investment. The statement mentions at any time I remove money from my term deposit, the amount I remove will have interest payments adjusted to the time money was removed so as not to allow money to be reinvested in more profitable investments. With bonds being cashed in, bonds have no such restrictions, yet if yields are higher loses can happen as explained above.

     US Federal Banking Board’s fake increasing interest rates fights inflation policy, unknown percentage of US mortgaged houses are in fixed interest rate loans I assume due to unregulated 2000 to 2002 Sub-prime lending followed by 2003 interest rate rising lasting several years… Raising interest rates policy affects businesses more than working class citizenry spending habits.

     US 8000 banks lending long term fixed interest rate mortgages during low interest rates periods while being financed by short term bank term deposits, depositors ability to withdraw money from banks term deposits, Federal Banking Board raising rates excuse to fight inflation seems to me to be an establishment setup economic collapse in-debt working class scam. Banks being unable to lend to new customers, finance to property buyers, property valuations crash to 2007 US levels.

     As I say increasing interest rates are inflationary, a sudden excuse not to continue increasing interest rates to fight inflation due to financial institutions holding onto US bonds and fixed rate lending fear of depositors withdrawals, a 1970s similar inflation period with a lower than inflation percentage US Federal Bank cash interest rate excuse erodes citizenry wealth as had been done during 1970s. Allowing property valuations to decline ready for a new period of high interest rate moderately reduced interest rate lending to first home buyer property investors.

     My end conclusion is that pretend learning school education which punishes human behaviour incentives to truly think, conditioning human instinctive escapism behaviours self-medication from thinking traumas distractions. Establishment appointed so called educated corporation managements fail to care about any mathematical calculations other than future executive bonuses.

steve9

deepthought101.simplesite.(com)