Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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.

Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: tom pope who wrote (114669)	12/5/2008 5:36:37 PM
From: ChanceIs	1 Recommendation Read Replies (1) \| Respond to of 206347

>>>The Fed shorts Treasuries in its open market operations? Doesn't sell from its balance sheet? How does it deliver?<<< If the FED has the Treasuries in inventory, then it simply sells them and takes the cash. The cash fundamentally being a loan from itself to begin with. If it doesn't have them in inventory, the FED prints money. Then it goes down to the next Treasury auction and buys them from the government. If the FED feels that rates are too low, and the government is dumping a lot of Treasuries, then the government is doing the job for the FED and there is no need for the FED to act. In that sense, the government is even worse than the FED. The government can print all of the Treasuries it wants w/o the requirement for delivery. In that sense, delivery comes from the US citizens, and until recently the unborn citizens.