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Strategies & Market Trends : ahhaha's ahs
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To: ahhaha who wrote (23744)9/21/2013 12:24:32 PM
From: cmgRead Replies (4) of 24758
 
Can I ask a question?

If the Fed can buy up most of the US debt and just move it to their balance sheet why can't / won't they do it forever. It's like magic. It's like a 401K loan. You borrow from yourself and pay it back with interest which then lowers the "deficit".

I assume the interest payment paid to fed will eventually become greater and greater but can't the fed just "retire" the debt and the interest payment go away?

Isn't this what England, Japan are doing now too?

So I guess I'm asking why Taper at all, just let the fed keep buying up the debt and bad mortgages.

thanks in advance,

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