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

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To: kris b who wrote (75448)12/13/2006 5:46:16 AM
From: Mike Johnston  Read Replies (2) of 110194
 
You still didn't answer my question. Very simple question. How will the FED get this liquidity into the hands of households like yours and mine.

At no point in the discussion with Mish have i mentioned that Fed will directly reliquify households. All i have said is that if Fed starts monetizing the bond market, hyperinflation would be a likely result.

So again, the answer to your question is no, they will not be directly reliquifying households. As i have said many times, the result of all this currency debasement will be a portion of society sinking into poverty due to wages not keeping up with inflation.

I have also said, that the Fed might print money to reliquify banks, GSE's and to buy government debt and the Treasury might again some day provide liquidity to households in the form of tax cuts or credits.
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