What recovery?
Ok ..I will bite on this one..WITH WHAT??????
WHOO HOOOO!!!!
We’Re Rich! Rich , I tell ya!!
Mercedez Benz in every driveway
Wagyu in the stewpot
Just print more money!!
Brilliant!
So it is using bad paper to buy up bad paper in order to keep the economic smoke and mirror game going.
Like the blond said, “I can’t be broke, I still have checks in my checkbook.”
“The Fed bought $1.25 trillion in mortgage-backed securities, and another $200 billion in debts owed by government-sponsored enterprises, primarily Fannie Mae and Freddie Mac, and completed the purchases in March. The Fed had planned to allow the size of that portfolio to shrink gradually over time as the debts matured or were prepaid. Instead, the Fed will now reinvest those principal payments in longer-term Treasury securities.
The central bank said it will continue to roll over its holdings of other Treasury securities as they mature.”
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Does this sound insane to you or is it just me? I’m only one of the “small people” but putting this in my terms sounds like using a credit card to pay off a credit card.
This is akin to someone reading tarot cards to determine how the manipulate the control in the cockpit of C-5A Galaxy. This isn’t going to end nicely.
This is akin to someone reading tarot cards to determine how to manipulate the controls in the cockpit of C-5A Galaxy. This isn’t going to end nicely.
Ping for later
God Help.
We should just go ahead and change the official name of the country to the United States of Fannie and Freddie. It’s an absolute joke.
Fed to Buy U.S. Debt, Saying Recovery Has Slowed
The headline should read, “Fed to Prints more Money, Saying Recovery Has Stalled”
Isn’t that sort of like lending money to yourself?
So that was it.
I thought I heard the sound of a bunch of heavy equipment getting cranked up. Couldn’t figure out what it was until I read about this today.
Those printing presses have to warm up a little first before you get a good run of $100 bills. After a few months I guess I won’t even notice them running day and night. The sound of my old ship’s engines used to lull me to sleep when I was in the military too.
Translation for the uninitiated: US GOVERNMENT TO PRINT MORE CURRENCY.
The Treasury prints Bonds. The Fed prints Federal Reserve Notes. They exchange them so the Treasury gets the FRNs and the Fed gets the Bonds and both pretend these are assets. The Treasury does more than pretend. It spends those FRNs that didn't exist last week.
I like to call the Bonds and the FRNs I-owe-me's. But whatever, it's fraud pure and simple.
ML/NJ
LOL!
We’ll pay off our Mastercard with our Visa. :)
Except the Fed can keep printing money - meaning that this is an endless cycle....
I remember MANY FReepers telling me that the Fed wasn’t and couldn’t do this. It WAS happening (through intermediaries) and now they are just taking off their masks and doing it directly. That whiff in the air is desperation.