Investors sell off dollar after Fed says it can do more

goingbroke

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goingbroke

How the Federal Reserve can print money to buy these Treasuries to keep the yields at historical lows beats me, but I would think there is a strong chance something major could blow up in a few years as a result of this manipulation of market forces.

The Federal Reserve has lost its moral compass as it no longer has the average citizens best interest in mind and is pandering to the banking industry. The Fed has been encouraging the wrong investment behavior for the last ten to fifteen years with an emphasis on creating more government and individual debt.

We no longer have capitalism but rather "manipulated capitalism" where the small investor no longer knows what the rules are as certain institutions and industries are bailed out and others are not.

wpr101

Yea, the Fed is a joke. They've made it clear their approach is to print any amount needed to avoid deflation.

roadrunner

How the Federal Reserve can print money to buy these Treasuries to keep the yields at historical lows beats me, but I would think there is a strong chance something major could blow up in a few years as a result of this manipulation of market forces.

These guys don't print money anymore in the light of day...at least not where J6P can see it. Rather, liquidity injections or QE is done behind the scenes through off shore accounts, via swaps with other central banks, or via indirect bidder treasury purchaseses, etc. The guys that came up with the derivative's scam game clearly are smart enough to know how to inject trillions into the markets w/o it showing up in M1 or M2. If the money supply has been truly stagnant then why does the FED's foreign custodial account growth show as a ramped curve and over $1 TRILL increase in less than a couple of years? Just in the past year alone they added about $300-400 BILL. Computer technology has given the banksters a way to do whatever they want under a shadow banking and monetary system. Meanwhile J6P and Congress only watch M1 and M2 and just see stagnation. It also doesn't hurt that the banks created $400 TRILL in low interest rate derivatives over the past decade. That's the primary motive force in keeping rates low, at least in the paper markets. That paper distortion has created a host of problems throughout the markets.

FED custodial account graph- a means to bypass the money supply checks and balances
The above looks inflationary to me.

Toby O'Connor on why you can't have a deflationary goal in a pure fiat system - short and sweet analysis w/charts

roadrunner