The Fed is getting destroyed...massive bond losses

[Grandluxe]

<img src='https://upload.wikimedia.org/wikipedia/commons/e/ef/U.S._Monetary_base.png' width=900" height="850">

 

[SpunkyTrader]

Quote from jones247:

+1... as a matter of fact, Ben Bernanke recently testified to that effect before congress... In the end, the fed will simply hold the bonds until maturity while simultaneously printing money...

Don't worry about the devaluation of the U.S. currency, as there's a universal collusion to print money among the world powers... This is necessary to keep the efficacy of the global market (import/export trades & the viability of each respective nation's economy participating in this ruse)... This is the consummate Insider Trading!!!

Walt

The party has to end, eventually.

 

[Crispy]

Quote from Grandluxe:

<img src='https://upload.wikimedia.org/wikipedia/commons/e/ef/U.S._Monetary_base.png' width=900" height="850">

Looks sustainable to me................................

 

[justrading]

Quote from Crispy:

Looks sustainable to me................................

Yeah, should achieve Earth Escape Velocity soon.

 

[joederp]

Call reception on the Obamaphone from that altitude is great..

 

[DT-waw]

impressive graph indeed.
put a graph of worldwide GDP next to it and it won't be that shocking

 

[Maverick74]

Quote from DT-waw:

impressive graph indeed.
put a graph of worldwide GDP next to it and it won't be that shocking

Put a graph of the balance sheets of all central banks next to worldwide GDP and yes, it will be shocking. Next...

 

[jem]

Please elaborate... I did not track with you all the way on this.

Is there no longer a money multiplier issue because we are currently pushing on a string... and banks don't want to lend because they realize many assets are propped up by the feds actions.

Are you saying we won't see inflation many classes of assets need to reprice form the previous cheap capital costs and return to typical capital costs. In other words we need to come off the juice and right now low interest rates are methadone.

Finally are we not going to see inflation in food and energy costs.

Quote from scriabinop23:

doh doh doh...

the tea-party anti-fed-money-printer group misses the point.

The Fed prints because that is by design. Banks don't multiply money (in a significant manner) anymore. They merely intermediary base money.

Base money is the new M3.

And every century banker (worth his salt) knows that.

With interest on reserves in place, combined with what will likely be a continued balance sheet recession / debt deflation cycle for the next decade, there is no risk to all of this fiscal-stimulus-free money printing.

Put the new money in peoples' hands (instead of bank excess reserves) and then it becomes a risk.

 

[Maverick74]

Don't worry, I'm sure it will take care of itself. What's on TV tonight?

 

[joederp]

Quote from DT-waw:

impressive graph indeed.
put a graph of worldwide GDP next to it and it won't be that shocking

As if the 'P' in GDP is actually reciprocal to future development in real product...U.S. especially..pfft.

Put a graph of 'official' worldwide inflation next to it - even less shocking.

Lies, damned lies, and statistics.