Posted on 03/20/2014 8:59:18 AM PDT by xzins
“Higher interest rates “
Um...no. It its the result of the fed manipulation of setting interest rates. There is no free-market cause and effect here.
It can create money out of thin air to buy those Treasuries and MBS.
Because the Fed can’t *legally* print money
It's a Central Bank, of course it can legally create money out of thin air, printed or otherwise.
it has to rely on the fiction of using over valued assets as collateral to buy the notes.
No it doesn't.
I think the Fed’s balance sheet is reaching the point where it can no longer be pretended that any of it is real.
Of course their purchases are real. Real bonds that pay about $100 billion a year in interest.
I don't need to "create" money to pay down my mortgage, I just spend a portion of my paycheck.
Please please please please!!!!!!!!
Please please please please!!!!!!!!
Ironically, during that stretch, my father in law pointed out that the “guaranteed” interest on his money, T bills, money markets was so high that it was not really worth the risk of his investments in his own business for the profits he was making. It was in reality, more profitable and much less risky to put his money into those things than to tie it up in accounts receivables that might not get paid.
His point? Look what it was doing to hinder genuine, protective business.
I remember for years folks using the interest paid on CDs, savings, etc., during the Carter years as their benchmark. I think I remember 10% CDs and 13% and higher on home loans. And something — I don’t remember what — went up to like 21%. Crazy time.
“All Interest is Paid by the Blood and Sweat of Labor, the money does not Exist”
The purpose of the panic Extortion push-through in 09, after it was plain that there was never a tangible 08 recovery
Extortion-Care was pushed through to exact hard labor on all but the Exempt Ones.
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