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.

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

To: DebtBomb who wrote (38959)	6/9/2011 8:05:50 AM
From: yoremopnhoj	Read Replies (1) \| Respond to of 71475

The following is from Savannahboy on what he hears QE3 will look like, investorvillage.com However, this time I'm hearing that there will be a "twist" instead of QE III. Under the twist approach (which has been tried before by the Fed), the Fed would sell short term Treasuries and use the money to buy 10 year Treasuries. Unlike QE II, the Fed wouldn't be pumping money into the financial markets. Rather, the Fed would be lengthening the maturity of its Treasury portfolio, but keeping the amount of the portfolio roughly the same. Presumably, the twist would simultaneously raise short-term interest rates, helping money market funds make a little spread, and drive down long-term interest rates to 2.0-2.5%, helping the real estate market. Indeed, dropping long-term interst rates by another 50-100 bips would incentivize all businesses to make long-range capital improvements. Of course, the banks would have to deal with a less steep yield curve, but an increase in short-term interest rates might compensate for that since they have so much money locked up as interest-bearing reserves.

To: DebtBomb who wrote (38959)	6/9/2011 10:14:42 AM
From: GROUND ZERO™	Respond to of 71475

Loaded to the hilt... GZ

To: DebtBomb who wrote (38959)	6/9/2011 12:01:56 PM
From: Fiscally Conservative	Read Replies (1) \| Respond to of 71475

It has been their game plan for over 20 years now. They will continue to print and supply the necessary $'s for Wall St to continue their ruse on the American Taxpayers. There is far too much at steak here for them to reverse their program. They have no choice but too raise the debt ceiling. They will rally the market when they publicize their intent and spin in around the fact Congress and Co. is now focused on their fiscal house with a conservative fiscal adgenda in place. The S&P will take out the 2008 highs and then the Party will abrutly end.