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Politics : President Barack Obama -- Ignore unavailable to you. Want to Upgrade?

To: tejek who wrote (128721)	12/13/2012 6:28:53 PM
From: RetiredNow	1 Recommendation Read Replies (2) \| Respond to of 149317

Maybe so. Here's some info for you. Did you know that it has been estimated the Fed Banks bought close to 70% of Treasury issuance in 2012? Those Treasuries were issued to finance our deficits and the money to buy them from the Fed was newly created. I think we both can agree that we're likely to see fairly large deficits for the next 10 years, even with a fiscal cliff resolution. Most of that will be purchased by the Fed, since our trading partners are already limiting their purchases to the extent that the Fed has had to exercise their buyer of last resort role on 70% of it. Just what impact do you think all that money printing will have over the next 10 years? I think it is very optimistic to believe the Fed is going to stop QE anytime soon or that they will even begin to unwind their balance sheet sometime in the next 10 years. We're all dancing on a knife's edge here and it's foolish to ignore the dangers. We have a high impact high risk situation ongoing.