The Federal Reserve Exudes Growing Desperation

http://www.ShareActivist.com ^ | Scott Ryan

[publius321]

A Marketwatch column points out that the "Fed wants to exit QE but keep long-term rates low".

This is as realistic as saying that "I want to get rich but I do not want to work".

They cannot keep rates down without buying UNLESS the Treasury takes over, literally prints the money off their presses - then buys their bonds themselves at auction instead of the Federal Reserve buying.

One of the things that keeps these scoundrels in the administration out of prison is that...

[Organic Panic]

Wrong. The fed wants to keep pumping to make dear leader and the democrats look good. They will stop seconds after republicans take the senate.

[KarlInOhio]

"Fed wants to exit QE but keep long-term rates low".

Add to that the fact that the Fed only controls short term rates directly. They can have some effect on long term rates, but if the herd of investors gets the whiff of hyperinflation in the air the stampede to high rates will occur very quickly.

[humblegunner]

Post the whole thing.

[publius321]

I agree with your assertion except the part that assumes I have to be wrong in order for your theory about their motives to be correct.

[publius321]

but then nobody will click my banners.

[A CA Guy]

They want interest rates low on the national debt despite screwing those who have or HAD bank accounts for retirement.
Yeah, they love to make Dems look good, but at some point the house of cards will go boom.

[grania]

If interest rates on CDs were increased, a lot more of that money would go into the economy than with the QE money going into the stockmarket.

Why? Retirees and near-retirees with substantial savings would spend that interest, a lot of it locally.

[publius321]

Absolutely. They probably realized that if rates spike they will more quickly have to default. Although, in my opinion, QE —is— default by another name. People are easily fooled.

[cdpap]

Never believe anything a central banker says. They have been debasing the dollar steadily for over thirty years and now they expect people to believe they give two Sh*ts about printing money. You cannot win a currency war if you stop firing bullets. If they stop or slow bond buying they will come up with an excuse to print and buy something else. Maybe college loan debt. No way they stop while japan is firing away with the yen.

[rarestia]

You’re either honest or trolling. HG appreciates both but trolling moreso after a few of Milwaukee’s Best.

[humblegunner]

HG appreciates both but trolling moreso after a few of Milwaukee’s Best.

Only when Busch isn't on sale.

[yefragetuwrabrumuy]

Though it would be like pulling teeth with them, the US Bureau of Engraving and Printing needs to have a third printing office, exclusively for printing registered, non-circulating, high denomination bills.

Typically, this would mean $10k, $100k, $1m, and $10m bills. Maybe even a limited issue of $100m.

The purpose of this would be to “de-virtualize” parts of the economy. To get liquid assets on computer turned into fiat physical assets, to protect them from “virtual meltdowns” of whatever kind.

Lots of things could cause such a meltdown, from solar flares to EMP detonations, to who knows what.

This would have other benefits as well, as it would take some liquidity out of the market.

[publius321]

I haven’t had “The Beast’ since Spring Break 1993 in Daytona. It was a great trip but we got stuck and slept in the middle of I-77 North of Lake Normon on the way back to Pittsburgh.

Traffic was at a dead stop, millions of cars. Good thing we had a full tank of gas that night. It was weird waking up in an idling car with four dudes on I-77 the next day.