FED announces "Twist" as attempt to simulate economy (unemployment, brainwash)
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(AP) - The Federal Reserve says it will sell $400 billion of its shorter-term securities to buy longer-term holdings, its latest effort to boost a weak economy.
CNBC.com
The Fed's move to rebalance its $2.87 trillion portfolio could lower Treasury yields further. Ultimately, it might reduce rates on mortgages and other consumer and business loans.
Rates are already at all time lows. It is liquidity and the ability for people to qualify that seems to account for the lack of new mortgage applications and re-fis. I don't see how this will accomplish much.
Economists surveyed by Bloomberg anticipated a Fed program today to extend the duration of its Treasuries. Of 42 surveyed analysts, 71 percent forecast such a move, even as 61 percent said it would probably fail to reduce unemployment.
The Fed is the problem, not the solution. Keynesian is also the problem and not the solution. However, I don't think a gold standard is the answer. We were on a gold standard before and that didn't stop the Great Depression. Gold standards don't work when a private, central bank has control of the money supply and issues currency with debt attached to it.
The Fed has to keep rates low, not for Americans or business but to keep themselves from having to pay out huge interest payments each month.
They are protecting their own butts.
I think you have it the other way around. The Federal Reserve owns the currency, I don't think it's gonna owe itself interest on money it created.
The low interest rates are for the big mega banks who are the insiders. Us peons that are not connected to the Fed do not get the 0.25% interest loans the Fed gives out
I think you have it the other way around. The Federal Reserve owns the currency, I don't think it's gonna owe itself interest on money it created.
The low interest rates are for the big mega banks who are the insiders. Us peons that are not connected to the Fed do not get the 0.25% interest loans the Fed gives out
I meant the Treasury (aka US Government).
LT rates have been going up..not drastically though and swinging.
China is investing money in Europe buying up assets.
The Fed has to move debt into long term vs short term.
How much can we borrow from ourselves is the real question ?
The problem is, we should let LT rates go up. The problem is too much stimulus that's not working. Time and time again Keynesian stimulus has yielded us nothing but a battered currency and reduced spending power. If so many Americans have to rely on loans and credit cards for bigger purchases, then we have a fundamental problem in our economy and our spending power and standard of living is an illusion. We have a debt-based economy where a lot of our past economic growth relied on credit expansion instead of trade.
Possibly gold. With yields down investors will move somewhere else.
And don't forget this debt bubble that is constantly growing.
As we know, when the Fed debases interest rates on Treasuries and the currency is affected, gold goes up even more. I don't think we've seen the end of the rise of gold any time soon.
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