Adam O.

Government Panic Could Herald Dollar Panic

I think the problem could lie with a potential oversupply of Treasuries. If the US can't raise cash from third parties, then the Fed effectively becomes the Treasury buyer of last resort.

That could be a destabilizing dynamic.


On Jan 08 12:00 PM secmaven wrote:

> The Fed's mere announcement of the possibility of the purchase of
> long term Treasuries drove 10 year and 30 year bond rates down by
> 100 basis points very quickly. If this plan is implemented why would
> interest rates rise? The Fed can buy all the bonds of all sellers
> and dictate the rate. The resulting dramatic increase in the dollar
> money supply by definition is inflationary but not in a world starved
> for liquidity due to the destruction of so many dollars, Euros, etc.
> loaned to bad debtors. For inflation to get rolling again it will
> take a shortage in the physical supply of oil.

2008 Was Crazy, But Predictable

Not to deride your article, but the "when" of things is arguably the most important part of a prediction. If you wait long enough, most anything will eventually happen.

I can feel safe in predicting the United States, as a nation, will disintegrate and become nothing more than a memory. Knowing when, or at least having some inkling, is the whole idea. Otherwise, it would be prudent to avoid the US economy all together, lest it ceases to exist tomorrow!

My Take on This Very Risky Market

This is one of the few more realistic and rational articles in that past few days. Thanks.