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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Hawkmoon who wrote (3156)	1/12/2001 4:34:07 AM
From: Moominoid	Read Replies (1) \| Respond to of 33421

And let's not forget that the treasury markets also provide the Fed the ability to inject or withdraw liquidity from the monetary system through their repurchase agreements. If the national debt is paid off, then how will they do this? Exactly - under the current system as I understand the core money supply is created by Central Bank lending to the government in return for government bonds. They then can also manage the money supply through Open Market transactions as well as the interest rate manipulations. It's not called the FOMC for nothing. David