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Strategies & Market Trends : ahhaha's ahs -- Ignore unavailable to you. Want to Upgrade?

To: cmg who wrote (23748)	9/21/2013 1:47:57 PM
From: Lhn5	Respond to of 24758

Along those lines does the fed activity debase the currency? If so at some point if this causes a crisis of confidence in the dollar there will be no defense.

To: cmg who wrote (23748)	9/21/2013 4:55:57 PM
From: ahhaha	Respond to of 24758

If the Fed can buy up most of the US debt and just move it to their balance sheet why can't Because 'crats can spend faster than Treasury can print? won't they do it forever. They will do it until they brew up the next disaster which isn't far away, mind you. It's like magic. How's that? Nothing magic about it at all. It's like a 401K loan. I can't see the analogy. You borrow from yourself and pay it back with interest which then lowers the "deficit". And, I can't comprehend this sentence. Let me ask you. How do you borrow from yourself? After all, anyone must borrow from another who can be burned, n'est-ce pas? I assume the interest payment paid to fed will eventually become greater and greater It's a small quantity in the scale of things, but also FED sends the accrued interest to Treasury. but can't the fed just "retire" the debt and the interest payment go away? Are you saying that FED can merely steal all that dough invested by foreign institutions, domestic corporations, and individual investors? I believe The King has such a plan in mind, but I do believe his approach entails far more collateral damage. Isn't this what England, Japan are doing now too? No one knows what England is doing including the British. Japan seeks to destroy itself but it can't do it because it's merely a pawn in their game. So I guess I'm asking why Taper at all, just let the fed keep buying up the debt and bad mortgages. I guess they agree with you, and actually, they must increase purchases to fight Baboon's deflation. Whereas, Permanent purchases haven't been effectual wrt promoting commerce they do have potential consequence. All the stock market run of 2013 has been based on the assumption that the potential will be unleashed, not on the usual 6 week realization of potential through the making of C&I loans. I ask you, where's the Baboon beef? FED ended bad mortgage buying, sub prime A securitization wrapped MBS, sometime in 2011. Its purpose in buying MBS now is to prevent the mortgage rate from rising and to help clear the market. Berdoo never learned that longer term Tpaper exclusively determines the mortgage rate(not LIBOR or some other BOR) and that buying such Tpaper causes its yield to rise contrary to his often stated claim that FED intends to push down or hold down longer term Tpaper rate. Meanwhile, back at the ranch, GPL is rising at 9%. What did hawkish Esther say? "We can't let the market dictate monetary policy".

To: cmg who wrote (23748)	9/21/2013 5:14:05 PM
From: Ahda	Respond to of 24758

Debt is treated as an asset on the books as long as the debtor remains in operation.

To: cmg who wrote (23748)	9/24/2013 12:16:08 PM
From: Kirk ©	Respond to of 24758

I consider money printing and artificially low interest rates a tax on savers. It moves money savers would get from the government in the form on interest payments on T bonds to government employees, contractors and entitlement recipients. If the Fed can buy up most of the US debt and just move it to their balance sheet why can't / won't they do it forever. It's like magic. It's like a 401K loan. You borrow from yourself and pay it back with interest which then lowers the "deficit". It is similar to a company issuing stock to pay its bills. It dilutes the value of all the other shares of stock people hold. About 20 yrs ago I heard the democrat heavyweights under Clinton (L Tyson, etc) talk about how they could tax our IRAs at 2% a year much like a property tax and I believe this is a perfect way to accomplish it. Of course, when you debase the currency and it is an arms race between the G20 to debase all their currencies to pay their pensions and prevent rioting in the streets, assets that produce income do well... such as dividend paying stocks and quality real estate that saves you paying rent or earns rent that you can increase as the currencies devalue. Sticking to this plan for the past 20 years has worked really really well for me. FWIW, I wrote a letter to the editor that was published warning about excessive spending and using bonds to pay for it over 20 years ago. The Libertarian party read it and asked me to run for office. I saw it as a hopeless joke here in CA and decided to windsurf rather than spin my wheels in futility.