And.... It's All QE

[traelin0]

If you're wondering what happens if The Fed abandons QE2, the following should put it in stark relief:

Monthly net TIC flows were $39.0 billion. Of this, net foreign private flows were $79.8 billion, and net foreign official flows were negative $40.8 billion.

Yuck.

Here's the problem - this entire ramp job is nothing other than monetization. And while this feels "real good", the question is always sustainability.

Anyone who believes that The Fed will be able to continue to monetize forever, and that prices will thus rise forever, and will not decline back to their actual risk-adjusted return and price once that buying stops, either by choice or force..... well..... you're rather deluded.

Foreign governments have got it figured out, and they're slowly slinking through the door, hoping you don't notice.

Who's the sucker again?

Read more here.

[traelin0]

Treasury Spreads, Yield Curve Steepest on Record

[traelin0]

[billisonboard]

Read more here.

Fool me once, shame on you. Fool me twice, shame on me.

[traelin0]

LOL bills.

[fairlycrazy23]

Can the fed go bankrupt: mises.org/daily/4869 (short answer is no)

[handyman2]

But they can bankrupt the US.

[Deleted]

trae-- you are one I admire for your knowledge. Could you possibly put all this in layman's terms? THX.

[fairlycrazy23]

Just remember that the fed has unlimited checkbook: