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To: capitalist229
It's called deflation and helicopter Ben has been airdropping some serious bucks in the past few months to forestall it.

How did he do that with an inverted yield curve?

Witness the recent dollar swoon.

Maybe you should look at the actions of foreign central banks to explain that, especially the ECB.

54 posted on 12/20/2006 9:12:34 AM PST by Moonman62 (The issue of whether cheap labor makes America great should have been settled by the Civil War.)
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To: Moonman62
How did he do that with an inverted yield curve?

Two ways. First, lower bank reserve requirements (now less than 1%). Second, buying Treasury bills to the tune of $2 billion last week alone.

Total bank credit creation zoomed up 500% in October !

I am surprised that the dollar has not fallen more given the magnitude of the stimulation.


BUMP

70 posted on 12/20/2006 9:34:17 AM PST by capitalist229 (Get Democrats out of our pockets and Republicans out of our bedrooms.)
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