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The Fed Is Beginning To Remove The Punchbowl… Are You Ready For What’s Coming?
TMO ^ | 2-10-2013 | Graham Summers

Posted on 02/10/2013 10:26:58 AM PST by blam

Edited on 02/10/2013 10:35:32 AM PST by Admin Moderator. [history]

The Fed Is Beginning To Remove The Punchbowl

(Excerpt) Read more at marketoracle.co.uk ...


TOPICS: News/Current Events
KEYWORDS: deflation; economy; fed; federalreserve; fedpunchbowl; inflation; unemployment
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To: familyop

-——when the Fed does eventually tighten up-——

That will happen soon after the next S&P downgrade that will trigger market action.

The DOJ thuggery will not deter the downgrade if things continue. Those with the reins to the markets have more power than the President


21 posted on 02/10/2013 12:23:26 PM PST by bert ((K.E. N.P. N.C. +12 .....The fairest Deduction to be reduced is the Standard Deduction)
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To: blam

the bottom line:

1. uncle sugar is taking away some sugar.

2. uncle sugar will still be spending way more than currenty taken in.

3. commodity prices are increasing.

4. energy prices are increasing.

5. taxes are increasing.

6. obamacare taxes kick in and are increasing over the years.

7. education costs are increasing.

8. jobs in general, and well-paying jobs are not increasing.

9. we are considering amnesty to 11-20 million mexicans here illegally, adding millions to the benefits systems already being told to do more with less.

10. average folks taxes going up through expiring tax policies that helped them, ending deductions and credits/writeoffs.

What is coming is the big squeeze. It’s going to shove what’s left of the shrinking middle class into the poverty class.


22 posted on 02/10/2013 12:27:20 PM PST by Secret Agent Man (I can neither confirm or deny that; even if I could, I couldn't - it's classified.)
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To: JohnPDuncan
Plus don't forget they just sent 237 billion dollars to european central banks.
23 posted on 02/10/2013 12:34:04 PM PST by hinckley buzzard
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To: familyop
Government will begin repudiating large chunks of debt and administering “haircuts” to investors.

The only kink in this scenario is that the largest debt holder of US debt is the Federal Reserve. And they can print their own money ad lib, so no "haircuts" for them.

24 posted on 02/10/2013 12:38:18 PM PST by hinckley buzzard
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To: hinckley buzzard

Yes, and we know that magic funny money is really valuable. The government already paid off the debt with it, because it can do that. ;-)


25 posted on 02/10/2013 1:07:54 PM PST by familyop (We Baby Boomers are croaking in an avalanche of rotten politics smelled around the planet.)
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To: SaxxonWoods

“We won’t default. And bondholders won’t pull the plug on us either.

We can and will continue to print (devalue). The plan is to slowly inflate our way out. It will work, but how well it will work is still in doubt.”

I agree we won’t default, that is because our debt is in our own currency.

I agree “the bondholders” won’t pull the plug because the bondholders are two entities, the fed and China.

But I think that IT WILL NOT WORK.

I say that because yes you can rig a market if you are the only participant, but much like the London Whale of JP Morgan, you can never unwind the trades if you are the only participant.

JP Morgan’s London Whale thought he could not lose because he could always rig the game by simply buying more of his underwater positions in an illiquid market. This worked until he could buy no more. Unwinding the positions was a complete disaster.

The federal reserve is thinking that, they can rig the market to zero interest rates and if interest rates tick up a bit, they can deal with that by buying more securities.

However, if they unwind the positions (as they must eventually,) all hell is going to break lose.


26 posted on 02/10/2013 2:00:44 PM PST by staytrue
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To: Michael Barnes

The Privately Owned Federal Reserve Bank has a 100 year charter that ends in December 2013. The Fed. Reserve Act is part of a 100 year plan to bankrupt and debt enslave all Americans.


27 posted on 02/10/2013 3:06:49 PM PST by JohnKinAK
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To: JohnKinAK

That was repealed about 80 years ago. The Fed has an open ended charter. It is not expiring. Ever.


28 posted on 02/10/2013 8:50:39 PM PST by Vermont Lt (Does anybody really know what time it is? Does anybody really care?)
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To: JohnKinAK

Here is the link to the Federal code

http://www.law.cornell.edu/uscode/text/12/341


29 posted on 02/10/2013 8:51:57 PM PST by Vermont Lt (Does anybody really know what time it is? Does anybody really care?)
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