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 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.