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Politics : Stockman Scott's Political Debate Porch

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To: eddieww who wrote (9837)11/27/2002 3:51:47 PM
From: Jim Willie CB  Read Replies (6) of 89467
 
Bernanke's USDollar monetizing reported plan will hurt US$
what slays me is the Fed's expectation that the financial world can have massive relief to incredibly large imbalances, all without any real pain or costly implications

I see some real big implications coming
first is the dilution of the US$ from added supply
which will immediately domino into cheaper USTBonds
which will immediately translate into higher shorterm rates
which will lead many to anticipate some inflation in the system, and thus higher longterm rates

they truly believe the dollarized debts can be monetized without consequence to interest rates ???

how naive
higher rates come thru the back door
this is socialistic debt relief
/ jim
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