Posted on 10/26/2022 8:48:11 AM PDT by EBH
Edited on 10/26/2022 9:29:58 AM PDT by Jim Robinson. [history]
Bloomberg
print endless money
pump it into the economy
crash the economy
perfect...
Not sure if I understand the bond market.
But if inflation is low, a 3% bond rate is good.
But if inflation is at 9% a 3% bond rate sux.
So anyone who has one wants to dump it.
Is that the gist of this?
I often remember Rush saying that the bond market goes in the reverse of the economy.
The money quote...
“RBA Deputy Governor Michele Bullock said in response to a question last month about the Australian central bank’s negative-equity position that “we don’t believe that we are impacted at all in our capacity to operate.” After all, “we can create money. That’s what we did when we bought the bonds,” she noted.”
Here comes the ignorance in the comments.
They are willing to destroy the entire engine that fuels the economy of this country solely to: 1) keep the House and Senate, and 2) try and keep that diaper-wearing imbecilic, lying demented pedophile in office for 4 more years.
and neither will happen... fools errand/intentional?
“Is that the gist of this?”
Yes, but there’s an additional factor. Back in 2008 when they started the bailouts, in order to stop all the money they were printing from causing inflation, they did these massive bond issues to take money out of circulation. The hopes were that, by the time the bonds matured and the money went back into circulation, the economy’s productivity would have recovered enough to negate the inflation.
Well, if people are selling the bonds prematurely, then that plan just went teats up I think.
If there was ONE thing I could credit Democrats with is their insane commitment to ‘sticking with the lie.’
They never give up. You knock them down with logical argument after logical argument for their fallacious, insane theories and claims and they dust themselves off and get back up and start in on another insane tack.
They’ve been through Climate, Orange Man Bad, Insurrection nonsense, Russia/Russia/Russia, and now Trannies and all the trappings..... They just don’t quit. Commitment. And I’m not even gonna get into the world-destroying Covid they ENGINEERED.
yup
They Federal reserve almost always make billions which goes to the Treasury after covering the Fed’s expenses. They are the one agency that is self funding.
This year appears to be different, and they may need funding from Congress. The year is the exception and the bad results merits a review of practices.
Overall, I’m not concerned if the Fed has one bad year. They’ll likely make up for it in a year or two.
Also, I understand the FED usually holds debt instruments to maturity. So most of their losses are paper losses that will dissappear as the debt instruments are repaid.
But I do understand they are likely to have an operating loss which may require funding this year. Haven’t dug in deep enough to understand it.
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