[mvonfr]

No, this cannot be done.

Not only it would collapse stock market, it would also make servicing debt unsustainable — without printing yet more money and making inflation worse.

It does not appear Fed has any tools to deal with the problem, every move loses.

[PeterPrinciple]

It does not appear Fed has any tools to deal with the problem, every move loses.

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In our lifetime we have observed a major world power go bankrupt......................

[ProtectOurFreedom]

Zugzwang

[SaxxonWoods]

“No, this cannot be done.”

It’s already been done. The Bond Market calls the shots, the FED has no choice but to follow. Go look at what the 10 yr Bond rate has done over the last 6 months.

That’s the rate that mortgage lenders set their rates from. They mark up the 10yr rate about 1.5% and that’s your mortgage rate. It adjusts daily with the 10yr rate. The FED only changes the overnight interest rate for banks. The FED will tighten and the country will survive. The coming adjustment is nothing compared to the early 80’s.

People have been programmed with BS fear porn about everything in our lives, reality is a lost concept.

[fuzzylogic]

I agree with you....but those are also good reasons for doing it if your intent is to destroy the country.

[Toddsterpatriot]

Not only it would collapse stock market, it would also make servicing debt unsustainable

It has to be done.

It does not appear Fed has any tools to deal with the problem, every move loses.

They can let some bonds mature, stop buying new bonds with the interest payments and even sell some bonds.