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To: Justinfo who wrote (54112)8/29/2013 10:03:13 AM
From: robert b furman5 Recommendations

Recommended By
Chip McVickar
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Justinfo
toccodolce

  Read Replies (2) | Respond to of 222225
 
The Fed just took their large debt and refinanced it at historical lows.

As rates rise the dollar value of the debt will decline as face value goes down.

All of the mortgage instruments will be held to maturity - the question is if they get renewed.

If not renewed a natural taper is built in.

That makes the talk about QE taper just noise - a taper has been built in from the beginning.

When rates rise - so too will the Dollar and then commodities stabilize or go down and inflation won't drive rates except in a low channel.

Years of easy money and modest inflation while debt demand stays stubbornly low.

JMHO

Bob



To: Justinfo who wrote (54112)8/29/2013 12:47:57 PM
From: Paxb2u  Respond to of 222225
 
More smoke and mirrors for treasuries huh?--Peace