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I just know beyond a shadow of a doubt
topstuf
Posts: 14,803 ✭✭✭✭✭
...that I am never gonna regret my idiotic stash of gold.
https://www.howestreet.com/2019/04/26/bank-of-japan-the-bond-crisis/
1
topstuf
Posts: 14,803 ✭✭✭✭✭
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Japanese Government Bonds Held by the Bank of Japan
https://www.boj.or.jp/en/statistics/boj/other/mei/index.htm/
This is where Socrates can guide us through the absolute chaos that we face
😱
Knowledge is the enemy of fear
From the link:
"Both the ECB and the BoJ are completely trapped. They have destroyed their respective bond markets meaning they can no longer even tolerate a free market with respect to interest rates. They cannot stop buying government debt for there is no bid at these rates."
To which I ask..... with what?
Hmm... from across the pond to our backyard.
—————-
APRIL 17, 2019 / 6:07 PM
Fed may need to buy more bonds than before crisis to manage U.S. rates: official
Trevor Hunnicutt
The Federal Reserve may need to buy more government bonds than it did before the 2008 financial crisis and conduct other money-market operations to implement its current approach to managing U.S. interest rates, an official of the New York Fed said on Wednesday.
The Fed this year decided to indefinitely manage short-term interest rates by tweaking the interest it pays banks on excess money they keep at the central bank using a process that requires the Fed to keep more bank capital on hand than it did prior to the global financial crisis.
After the crisis, the Fed bulked up its holdings by buying Treasuries using bank reserves it created. Eventually it started letting bonds and reserves decline to bring policy back to normal.
In March, Fed officials decided to stop letting those bond holdings decline by September. To keep control of rates, officials will eventually have to start buying bonds again and building up bank reserves.
“The size of these purchases will need to be larger than similar pre-crisis operations,” in part because the Fed’s other liabilities – including paper currency and the U.S. government’s accounts – are bigger, Lorie Logan, an official at the Federal Reserve Bank of New York, said in a speech at an event in New York. The purchases would be “gradual and mechanical,” she said.
Logan is the head of market operations monitoring and analysis at the New York Fed, which implements the Fed’s monetary policies by trading in the market and managing the central bank’s portfolio.
She said the possibility of the Fed’s adopting a program that would let banks convert Treasuries to reserves on demand, known as a standing repo facility, is a discussion “really in its early stages.”
In recent weeks U.S. banks have occasionally paid more to borrow reserves from each other than what the Fed pays.
But Logan said bank reserves are currently ample enough that the central bank can still manage interest rates well. Bank borrowing rates that are stable and modestly above the interest paid by the Fed does not indicate an insufficient supply of reserves, she said.
Reporting by Trevor Hunnicutt; editing by Diane Craft and Leslie Adler
https://www.reuters.com/article/us-usa-fed-balancesheet/fed-may-need-to-buy-more-bonds-than-before-crisis-to-manage-u-s-rates-official-idUSKCN1RT2OT
We stoically march forward to the major economic disaster in the future. No one can predict when, however, no one can deny it is coming....Cheers, RickO
Don't forget your idiotic stash of silver. ;-)
I've mentioned this before.
keystroke money into existence, buy debt, forgive debt.
all that balance sheet normalization.... who needs it? just forgive the debt...
of course, the administration would never do this.
That has been addressed.
So, the politicians spend too much $$ on their pet projects to buy votes so they can stay in office to collect all those perks and Cadillac benefits - and along comes the private banking cartel to buy the debt that the gubmint owes.
The gubmint "sells" the private banking cartel their debt (which will never be repaid) and the private banking cartel keystrokes a bunch of 010101010101's to "pay" for the debt of the insolvent gubmint.
Seems innocent enough. Why even bother with taxes?
I knew it would happen.