The Fed has no choice but to raise interest rates and crush the market

[WeToddDid2]

Very simple. It loses its control over future inflation. If you have the slightest doubt about that then its maybe time to undust history books. Last time I checked that was one of Fed's primary mandates.

With that I wave a good night and good bye.

So you don't know the answer? You couldn't find it on Google?

It loses its control over future inflation.

What does that have to do with Ts on it's balance sheet if held to maturity?

What does one of it's mandates have anything to do with Ts held on it's balance sheet if held to maturity? Again, why the fuck do you think the Fed gives a shit about MTM losses? It would scare a lot of dumb asses like you and most likely impact the equity/bond market due to misconceptions.

 

[WeToddDid2]

Do you understand bonds at all?

 

[WeToddDid2]

Very simple. It loses its control over future inflation. If you have the slightest doubt about that then its maybe time to undust history books. Last time I checked that was one of Fed's primary mandates.

With that I wave a good night and good bye.

Do you also think that the QE carried out by the Fed is directly inflationary?

 

[WeToddDid2]

Opening can of worms now.

 

[WeToddDid2]

Okay; I will just mark this one as a win and move along.

 

[piezoe]

I think the fed won't do anything until they lose control of the bond market. By then, it will be too late. No big deal to an independent trader who has positioned himself properly.

The Fed and Treasury will never "lose control" of the bond market. Not in your lifetime at least. The Yellen Fed rocks! ROCK ON, oh Fed, you wonderus thing!

 

[piezoe]

Yes that same U.S. dollar, are you really implying that the government hasnt destroyed the value of the dollar over the long term? Just because everyone else is destroying their dollar faster than us, doesnt mean we arent doing the same thing.

It's a different game, Pad. We are not on the gold standard anymore. It's a relative value world. The 35$/Oz. scale is dead and buried. It seems your chart is telling us that, if we want to preserve the purchasing power of the currency, we should regulate banks, eliminate war, and adopt a fiat currency. The U.S. dollar seems to have done rather well ever since the Nixon Shock, despite continuous war!

 

[der_kommissar]

The Yellen Fed rocks! ROCK ON, oh Fed, you wonderus thing!

Nauseating shill job.

 

[achilles28]

The Fed and Treasury will never "lose control" of the bond market. Not in your lifetime at least. The Yellen Fed rocks! ROCK ON, oh Fed, you wonderus thing!

But they will of the USD, you dumb turd.

 

[volpunter]

you mean in the same way than they have not lost control of the mortgage market into 2007 that lead to one of the worst economic declines in human history (measured by how fast and steep the decline was).

Will it be the Fed that actually sets up incentives that put money into customers' pockets again? Because all the money printing so far has not added a single dollar into peoples' pockets, instead you see retarded web apps and companies that created a single game that are valued at billions of shekels. This is how an economy grows: Customers buy products they perceive as more valuable than the money spent, demand for product and services rises, corporations invest to expand to meet demand, wages rise as a result of competition for human capital. All the Fed has accomplished so far is that it has enriched those who hold paper assets and market bullshit. Corporations would be all over investing in capital expenditures if they anticipated any pickup in consumer spending. Unfortunately consumers' pockets are empty. And there is nothing the Fed can do, so much for loss of control.

And what do you mean by "control of the bond market"? I said the Fed will lose their grip on handling inflation once it eventually surfaces. Those are two very different things: Look at the BOJ, they have a tight grip on JGBs, such a tight grip that hardly any paper trades in the market because there hardly is anyone who wants to transact because the only bonds the BOJ does not hold are stored deep in Buy Side firms's bunkers. However, BOJ has still not figured out how to control the cost of money in any way whatsoever.

The Fed and Treasury will never "lose control" of the bond market. Not in your lifetime at least. The Yellen Fed rocks! ROCK ON, oh Fed, you wonderus thing!