Larry Livingstone

Don't Short the Fed Yet

Think about it this way...total supply will increase by around 30% this year...total demand from foreigners will have to go down by a minimum of 15% (think shrinking trade surpluses) this means that domestic investors or the fed will have to pick up the slack just to keep them where they are...the risk/reward ratio of shorting them is quite favorable...

Fed Monetizes Debt Leading Investors to Embrace Gold

Where can I find the link to this info?

Thx


On Feb 02 04:04 PM Skeptik wrote:

> Yes, the Fed increased their Holdings of US Treasury Bonds and Notes
> by $2.423 billion during the week, with $921 million of net new purchases
> of Treasury Notes within the 5-Year, and 10-Year, ‘maturity distribution’.
>

Fed Monetizes Debt Leading Investors to Embrace Gold

Boris, I don't see any purchases on treasuries in the last report...only a deduction of $181 mil versus last week...in fact, over the last year, treasury holdings by the fed have been going down...with the fed I have learned that it is more important to watch what they do rather than what they say...(note how they are only purchasing MBSs at a rate of $50B a year versus a $500B commitment....)
www.federalreserve.gov.../