The Fed needs help buying Treasuries, they can't do it alone, and with the China and Japan buying less and less, they need to change the rules of the largest pool of “safe money”, MM funds, in order to force them into Treasuries, thereby keeping, if only temporarily, interest rates low.
Please note from the article; Money market funds can reorganize with different rules.
These rules include the fed being the lender of last resort for additional Gov’t over site.
MM funds will attempt to do what's in their investors best interest while trying to continue to make a living.
If and when, we have a stock market decline, money will move to the new fed controlled MM funds which will be forced into buying Treasury debt with increasingly longer maturities, thereby keeping rates artificially low.
The alternative would be money going into the traditional MM funds, which would provide corporate America with EXTREMLY low credit.
The only reason this is not favored is that these corporations could then write their own ticket outside of Gov’t control.
By restricting access to your money, the gov’t is projecting their expectations that “Cash will be King” during a deflationary environment.
We need to watch what these MM funds do in the coming weeks and months.
If you get a notice/amendment to your money market account please READ IT. The rules may be changing.
Restricting access to your money with additional reliance on the Gov’t is HUGE PROBLEM.
This could be nothing short of a complete takeover of our financial system and by default, capitalism, and our way of life.
The largest amount of money invested in this country is invested in “safe” assets, Gov’t bonds, corporate bonds (sorry Chrysler) etc..
I think it was Will Rogers that said “I'm more concerned about the return of my money than with the return on my money”.
We may now be entering a time when what we thought was a safe place to park cash is no longer what we thought it was.
Gold is not the answer.
All the exits are being closed.
“which will be forced into buying Treasury debt “
I don’t see where you get that from the article. Money markets invest in short term corporate paper and will continue to do so. You just won’t be able to liquidate immediately if there is a crisis.
Bump, so I can find it later.
Do we here have a connection to this???:
http://knowledgecreatespower.blogspot.com/2009/12/of-executive-orders-and-trojan-horses.html
Scroll down to the end to link: “U.S. Forces Plan Direct Action....”
Then @ “The Europe Union Times” click at “Listen NOW” !!!