FED to buy more treasuries

[Tempest]

http://online.wsj.com/article/BT-CO-20090527-713991.html

 Quote:

The Federal Reserve Bank of New York announced Wednesday its latest round of Treasury purchases. The details come as part of a $300 billion program by the central bank to buy government bonds in a bid to help lower borrowing costs and improve credit availability.

It sure is nice to be able to buy your own debt...

 

[PandaBear]

It has been done forever. The FED raise/lower interest rate by adjusting the amount of cash/bond/other assets to increase/reduce the monetary supply.

 

[Gary Allan]

It would be better if you could hear it in person. Imagine a D.A. loudly proclaiming, Q: DO YOU KNOW THAT HE IS A CARD CARRYING MEMBER OF OVER 3 PUBLIC LIBRARIES???? A: Well, no, I didn't Q: How does that make you feel? A: I dunno S/Q: YOU DON'T KNOW ANYTHING ABOUT HIM AND YOU DON'T KNOW HOW THAT MAKES YOU FEEL? A: well ..ah..

 

[Drew99GT]

 Originally Posted By: PandaBear

It has been done forever. The FED raise/lower interest rate by adjusting the amount of cash/bond/other assets to increase/reduce the monetary supply.

What they are doing right now is not open market operations. They are printing money - creating money out of thin air to buy treasuries. AKA monetizing our government debt. NOT GOOD!

 

[Gary Allan]

They're just tidying up a few loose strings here, Drew. Most of the work is done. The rest is merely detail. This has been a trap that's been a long time in the making.

 

[Drew99GT]

They're doing exactly what they did in the late 70s. Long term interest rates have doubled in the last 6 months. Don't be surprised if they go well past 10 percent in the coming years! Then we'll need another Paul Volker to pull the E-Brake and stop us from sliding off an economic cliff. These morons keep putting off the pain that WILL come. I swear, they are all alcoholics or junkies.

 

[oilyriser]

They are one side of the "first through inflation and then through deflation" team.