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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?


To: ggersh who wrote (16217)1/9/2009 3:32:18 PM
From: Real Man  Read Replies (1) | Respond to of 71456
 
Sure. Currency in circulation is up 65.126 Billion YOY. This
is, however, tiny compared with other stuff. Most of
adjusted base is bank reserves. The Fed will need to
print trillions to support the treasuries if and when...
Note that the budget deficit will exceed the trade deficit
by a wide margin, so FCB support alone will be insufficient
this year. They will need to finance a trillion extra.

federalreserve.gov

But, so far the buyers are mostly foreign central banks

jessescrossroadscafe.blogspot.com



To: ggersh who wrote (16217)1/9/2009 4:31:06 PM
From: Real Man  Read Replies (1) | Respond to of 71456
 
Fed is buying agency debt with printed money now, Fannie and Freddie. They
are not supposed to, but doing whatever. Foreigners don't
want it. It's their balance sheet. -g-

newyorkfed.org