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REPORT ABUSIVE REPLY
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Message Subject
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Are Central Banks Really Thinking Of Raising Interest Rates, If So, This Will Be A SHTF Signal...
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Saddletramp |
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Post Content
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US Fed has been buying over 70% of long term US Treasuries over past three years (China stopped buying US debt, and is buying gold bullion).
QE4 is buying $45 billion per month of more US Treasuries. Fed has to buy because US Gov is deficit spending over $1trillion every year.
At some point in the future, Fed can just "forgive" all the US Treasury debt they hold to bring the total deficit way down. Since the Fed buys all that debt by printing money out of thin air, nothing is lost in forgiving a big chunk of US debt. Problem solved.
Quoting: Anonymous Coward 2164937 And the REASON the Fed is currently purchasing almost 90% of our long term debt, is simple...Interest Rates are being kept artificially low!!! I know some people think it can go on forever...but Keynesian Economic Cycles were never meant to be perpetual motion machines...it's a cycle, it goes up, it comes down, it resets, then hopefully it goes up again...
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