This isn't printing more money. It's taking existing money that exists as principal payments on toxic mortgages and using it to buy US Treasury securities. There is no new money allocated in doing this.
The funny part is that the amount of principal payments on Fannie and Freddie agency debt owned by the Fed is effectively zero.
This is all a ruse.
So what is going to happen? A massive deflation leading to depression or hyperinflation? Or are we going to have one, then the other. Should folks take retirement money out of investments and stuff the mattress with it or what?
++++++++ This isn’t printing more money. It’s taking existing money that exists as principal payments on toxic mortgages and using it to buy US Treasury securities.
In effect, another step closer to the “backstop.” Missing from the discussion...BACKSTOP. The “players” will never allow their heist to inflate beyond a certain level. (And by the way..we already HAVE inflation).
Leverage “bundling” at the heart of the derivatives. The BACKSTOP factored in, without calling it a “bailout.” If they’re “called in”, prepare for the backstop, heavy oppressive taxation, attempted hidden, or VAT.