they are all falling, it's the rate of fall, one against the other we are betting on
The Fed has no choice but to raise interest rates and crush the market
- Thread starter Max E.
- Start date
Why would the Fed have to liquidate the bonds it bought under QE?
Ben Bernanke implied many times that they would just let them mature
Exactly! They've been "cheating" for 6-7 years now and they know it. The whole point of "emergency measures" is to create a short term nuclear option to combat a "worst case scenario". "ZIRP" could not nor should it have been the "new normal".
It doesn't. But if it wants rates to rise, that might be an option it has to explore.
We're past the point of no return. There is no way the US can ever repay or grow its way out of the national debt. It's done. In order to "grow our way" out of the national debt, the economy would have to print 6% REAL growth, YOY, for the next foreseeable decade, and then continue that boom for another decade at around 5% REAL YOY to see any kind of appreciable change in the debt.
That or the US consumer MUST begin spending again. But they're busy deleveraging and will be for some time. It's done. Over. Finished. We're fucked.
The FED could raise rates, but that would quickly precipitate a default on the national debt and a massive depression. The FED works for the banks, and won't do this. They'll continue easy money, obfuscate and pass the buck on to Congress.
That or the US consumer MUST begin spending again. But they're busy deleveraging and will be for some time. It's done. Over. Finished. We're fucked.
The FED could raise rates, but that would quickly precipitate a default on the national debt and a massive depression. The FED works for the banks, and won't do this. They'll continue easy money, obfuscate and pass the buck on to Congress.
They may buy it, along with other things, but it is not currency.
Define currency. I mean, I know you'll do it in a way that excludes gold, but to the world, currency is something that can be exchanged for goods and services, right? Gold is exchanged for currency that is exchanged for goods and services, and gold holds it's value so that when a given currency falls in value, gold gets more of that currency.
So for all intents and purposes, it is a store of value. While it may not be paper currency, it is still essentially money.
It has worth. If it didn't, central banks and sovereign wealth funds wouldn't waste time with it. The good thing about not being actual currency is that no one can print it and devalue it.
Gold no longer functions as a currency. That it is traded doesn't change that, canola seed has worth and is traded, but it's not currency. And it won't be me defining currency "in a way that excludes gold", the definition of money and currency can be found all over.
... Just because everyone else is destroying their dollar faster than us, doesnt mean we arent doing the same thing.
Actually, in a world of fiat currencies, it does mean we aren't doing the same thing, not exactly the same thing anyway.