Posted on 03/19/2009 7:05:52 AM PDT by arthurus
The flood of US dollars seems to be coming, as well as inflation. The Federal Reserve started buying massive amounts of Treasuries and is gearing up its purchases of mortgage debt. The Fed will buy as much as $300 billion in long-term Treasurys in the next six months. It will increase its purchases of mortgage-backed securities...
(Excerpt) Read more at seekingalpha.com ...
Toilet bowl is swirling at a faster rate.
Your thoughts?
Why doesn’t treasury Dept. just print the money instead of “laundering” it thru the Fed Res. Bank? Save a step, at least be efficient amd straitforward about it.
Because that’s the way the system is set up.
Plenty of money available at low fixed rates to those with good credit.
I re-fid my house, pulled out equity, and plan on paying off my house with degraded Obamabux.
Oh and the Treasury is affected by election results. The Fed is insulated against that
Buy commodities. Hyperinflation is the only way the Fed can deal with the Obama commies in charge now.
Yesterday saw the biggest move in the 10 year bond in history. Let’s hope these goombahs know what the hell they are doing. Yeah, I know.
It’s just an image. Right Click and save as. Then send as an attachment
Gold up 62.50
Silver is the buy
Inflation - real inflation, ie, rising prices, not economic gibber-jabber about money supplies — won’t start until the money can get out into consumer’s hands.
If you go into the Fed’s survey on lending/lenders, you’ll see that lending standards are still tightening (not “tight already” but getting “tighter still”). So the money is piling up on bank balance sheets.
Now, this is different in that the Fed is becoming the secondary market (not just buying the secondary market - the Fed is rapidly becoming THE secondary market - have a RMBS to peddle? Call Bennie! He’s buying them by the truckload!)
BUT... will this raise or stabilize the price of housing? I don’t think so, not with unemployment rising and wage growth being stagnant or falling.
It will present wonderful opportunities to re-fi, however.
I expected to hear alot about yesterday’s announcement that teh FED is buying a ton of Treasuries but all I got was silence. I’m no financial genius but even I can see it’s a bad thing when we start ‘buying’ our own debt. Is there anyone here who can put in layman’s terms just how bad a thing this is ?
I'm semi retired with a California pension with a 2% COLA cap (Annually)
So besides ammo, do you see any other investment(s) to minimized the effect of inflation?
Right now? Nothing jumps to mind unless you want to join the gold bugs.
Bernanke’s policies are really screwing people in your situation - ie, people who need dependable yield on safe investments. The market screwed the “what is safe?” part, and Bernanke has screwed the “dependable yield” side of it.
Precious metals -
brass, lead, etc, in certain combinations.
This will be the currency after 0bama gets rolling.
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