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: Tommaso who wrote (44979)	4/10/2012 10:52:44 AM
From: Giordano Bruno	Read Replies (1) \| Respond to of 71456

Lawrence Goodman, a former Treasury official and current president of the Center for Financial Stability, writes in a Wall Street Journal... Read more: WSJ: Fed Buying 61 Percent of US Debt The government won't be verifying that.

To: Tommaso who wrote (44979)	4/10/2012 11:38:15 PM
From: Real Man	1 Recommendation Read Replies (2) \| Respond to of 71456

I think tracking QE (not operation twist) and the budget deficit should provide the answer to this question. At present the Fed is in operation twist mode, which means they are just rotating money from short term bills to long term bonds. That said, the debt based monetary system is so screwed up that it's impossible to know how exactly the Fed's printing influences prices. What makes matters so complicated is that all so-called "money" is debt. Fed can create it, banks can too! The Fed normally just targets interest rates, not doing QEs left and right, and that itself creates new money and inflation! Govt. statistics is screwed up. Welcome to the Brave New Old World without the gold standard. It's simply too complicated a task for one to figure out WTF is going on with our currency. At the time the Fed actively printed, they bought close to all newly issued government debt. Right now they are buying some from QE2 lite, and rotating some too, but not 60%. That said, what the Fed already bought can have a very dramatic effect on prices, should it get an appropriate multiplication factor from the banking system (also known as monetary velocity, to confuse one entirely -vbg-) I'd say the Fed indeed bought a very decent percentage of newly issued federal debt in 2011, and it's probably somewhere close to 50%, coz they stopped in late June.