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To: Lucretius who wrote (9860)	8/10/2000 12:00:43 AM
From: Ken98	Respond to of 436258

The current tab for the Fed print-a-thon (from the most recent Moto report): <<From the New York Federal Reserve Bank: "In 1997, the portfolio of domestic securities in the System Open Market Account (SOMA) expanded by a record $41 billion ( excluding all temporary operations ), ending the year at $448 billion. Outright purchases of Treasury securities totaled $44 billion, offset to a small degree by redemptions of some Treasury and federal agency issues." "In 1999, the portfolio of domestic securities in the System Open Market Account (SOMA) expanded by a record $44 billion, surpassing the previous record of $41 billion set in 1997. At the end of the year, the SOMA stood at $517 billion (Chart 8).7 All of the expansion was achieved though outright purchases of Treasury securities in the market; there were no purchases made from foreign accounts." As mentioned, or alluded to, the debt buybacks provide the equivalent of permanent funds injected to the banking system. Mr. Summers himself has employed the term coupon pass when defining the effects of the buybacks on the financial system. Total amount of buybacks the year 2000 to date: $21.963 billion Total Fed permanent reserve injections the year 2000 to date: $26.266 billion With more than four months remaining this year, $48.229 billion in permanent funds have been applied to the U.S. financial system.>> So even if Bubble Boy raises rates again, won't he just print ever faster? And, heaven forbid, can you imagine how much he would print if we REALLY got into trouble going into an election cycle?