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I agree, and for one major reason: whether it works or not, the Fed and Treasury are totally committed to reflation. The only things that can stop them are success, currency collapse, or overt threats from powerful foreign debt holders.
Dec 03 14:03 pm
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All Comments by SW Richmond »The Debate About Zero [View article]
On Dec 03 01:00 PM Chris B wrote:
> Interest rates for overnight loans are not the only weapon we have
> against deflation. They are the fine-tuning tool. The treasury
> can print as much cash as it wants and show up to the t-bond auctions
> and buy everything in sight at whatever price it takes, flooding
> the market with capital. Then there's fiscal stimulus. This year's
> "stimulus" checks are just the first of many. These are the heavy
> equipment tools.
>
> When "helicopter" Ben fires up the printing presses, I doubt you
> want to be in 2.7% treasury bonds. Get ready for a wild ride, as
> the market suddenly realizes that they underestimated the ability
> of government to inflate.