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Politics : The Obama - Clinton Disaster -- Ignore unavailable to you. Want to Upgrade?


To: DuckTapeSunroof who wrote (91854)3/31/2014 6:03:57 PM
From: Wayners  Respond to of 103300
 
There is a major hole not addressed in all of that. I was talking about whether the Federal Reserve will ever be able to unwind their positions. I say no way. The Fed is buying all the Govt Debt because the Treasury has nobody else to unload the Trillions on and if interest rates go up to 5% or 7%, the interest on the debt the Treasury already has will cause a monstrous financial calamity. People are losing faith in the whole stinking con.

I think the Fed was designed from the beginning to be a "bad bank" for those with connections to unload their bad debts on. That especially includes the U.S. Treasury but also includes member commercial banks. Eventually the Fed will be found insolvent because their so called assets aren't really worth anything other than the energy value of burning all the various forms of paper they own as assets.