SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?


To: ggersh who wrote (5192)3/18/2008 2:05:28 PM
From: Real Man  Read Replies (1) | Respond to of 71461
 
jessescrossroadscafe.blogspot.com

The same thoughts as mine .... 60% of Fed SOMA is
lent out. They will have to increase it (by monetizing
T-auctions or directly).

"The next shoe to drop will be the methods by which the
Fed "increases the size of their balance sheet" quickly enough
to achieve a quantitative easing. Several commentators are
calculating the Fed held assets as they approach zero as the
Fed extends its assets to the banks and exchanges them in a
variety of swaps.

We suggest it is probably incorrect to assume that when the
Fed expend the remaining three or four hundred billions of
existing Treasury holdings that they will say 'game over' and
call it a day. That when we leave the trodden path of monetary
history and the US attempts to break the final bonds of a
purely fiat currency."