The Epic American Credit and Bond Bubble Laboratory Message Board

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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: mishedlo who wrote (67868)	8/10/2006 2:27:33 AM
From: RJA_	Read Replies (2) of 110194

>>Yes, prices HAVE risen. But how much of that is quality, materials, size, etc. And how much of that is because of printing? bart13, can you interpret or provide additional information re this graph for us? Mish, this graph seeks to answer your question: It is on this page: nowandfutures.com Graph: nowandfutures.com Caption: How much is the Fed supporting US Treasury Bonds and/or monetizing some of the debt? "Monetize: Printing money to pay off some type of government debt or obligation. When the U.S. Treasury receives money from the Federal Reserve system, this is known as "monetizing the debt". The debt referred to is the U.S. Government debt and is caused by the government having spent more than it takes in for many decades. The basic transaction of monetizing that debt is literally an accounting entry in a computer at the Fed - one side shows the purchase of U.S. Treasury paper securities (bonds and notes) and the other represents the Fed literally creating money out of nothing. The long term effect is inflation. "

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