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To: Zakeet
What this means is that the G14 banks will have to start buying massive quantities of US Treasuries. The Fed won't stop buying Treasuries, they will still convert hundreds of billions of dollars per year from mortgages into Treasuries to keep a level liability balance. Voila; QE3 without having to announce QE3...

Always remember: the Fed is totally about propping up the big insolvent banks with their phony asset balances. However, the Fed just hides behind a false facade of acting in the national interests. Watch what they do; pay little attention to what they say is their motivation. Currently, they "must" prop up certain asset classes so that their Bank masters don't get wiped out from a huge collapse in their derivatives exposure.

Just another form of stealth financial repression of the masses by the financial and federal fascist elites.

12 posted on 06/06/2011 7:19:37 AM PDT by JustTheTruth (Sometimes the Truth hurts so much that most refuse to face or accept it, even when it is obvious.)
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To: JustTheTruth
Voila; QE3 without having to announce QE3...

Always remember: the Fed is totally about propping up the big insolvent banks with their phony asset balances.

But the DONK (aka Dodd Frank) was all about solving problems like derivatives. And shades of Enron, Batman, SOX was all about ending things like Mark to Make Believe. And Helicopter Ben promised there would be no more QE and he was 100 percent sure he could control inflation.

In other words, it sounds like you have about as much confidence in the b*st*rds as I do.

14 posted on 06/06/2011 7:30:19 AM PDT by Zakeet (The difference between the Wee Wee and a battery ... the battery has a positive side)
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