Fed weighs debt sales of it's own

[WINEX_IHB]

http://online.wsj.com/article/SB122888021757894023.html?mod=testMod

 

[awgee_IHB]

So ... the Federal Reserve borrows your federal reserve notes and gives you an IOU?

Then, the Federal Reserve prints some more FRNs to pay you back the FRNs it borrowed from you?

Anybody else see the irony here?

 

[WINEX_IHB]

So ... the Federal Reserve borrows your federal reserve notes and gives you an IOU?

Then, the Federal Reserve prints some more FRNs to pay you back the FRNs it borrowed from you?

Anybody else see the irony here?

I see nothing but the incredible potential to absolutely shred any value left in the dollar.

 

[jbenko_IHB]

I see nothing more than Americas finest financial engineers at work. The FED.

 

[IrvineRenter_IHB]

"Some economists worry about the consequences of this approach. Fed officials could find it challenging to remove the cash from the system once markets stabilize and the economy improves. It's not a problem now, but if they're too slow to act later it can cause inflation."

You think?

 

[awgee_IHB]

"Some economists worry about the consequences of this approach. Fed officials could find it challenging to remove the cash from the system once markets stabilize and the economy improves. It's not a problem now, but if they're too slow to act later it can cause inflation."

You think?

I can not help but wonder, why do they assume that the market will stabilize and the economy will improve before hyperinflation sets in? Why do they think there will be any opportunity to remove the cash?

 

[skek_IHB]

.

 

[WINEX_IHB]

"Some economists worry about the consequences of this approach. Fed officials could find it challenging to remove the cash from the system once markets stabilize and the economy improves. It's not a problem now, but if they're too slow to act later it can cause inflation."

You think?

I can not help but wonder, why do they assume that the market will stabilize and the economy will improve before hyperinflation sets in? Why do they think there will be any opportunity to remove the cash?

That's the trillion dollar question, isn't it? Everywhere in the financial media I hear "we'll deal with the potential for inflation down the road, first we want to jump start the economy." I heard it this morning from a guest on Charlie Stein's Bloomberg radio show.

The assumption is that inflation is like some big happy puppy that is waiting patiently at the door for his owner to come home and play.

Inflation might be more like my childhood dog -- a crazy mutt who was smart enough to know how to open the door on on his own and who would take off down the street at the first opportunity, determined as all hell that no one would ever catch and confine him again.

Given the run up in national debt from all the bailout problems, we better hope for inflation. If we don't get it, this country won't be able to remain solvent. We may end up going the way of the USSR.

 

[stepping_up_IHB]

Hyperinflation is already here.... the $100,000 question is now that $1 trillion question.

 

[awgee_IHB]

"Some economists worry about the consequences of this approach. Fed officials could find it challenging to remove the cash from the system once markets stabilize and the economy improves. It's not a problem now, but if they're too slow to act later it can cause inflation."

You think?

I can not help but wonder, why do they assume that the market will stabilize and the economy will improve before hyperinflation sets in? Why do they think there will be any opportunity to remove the cash?

That's the trillion dollar question, isn't it? Everywhere in the financial media I hear "we'll deal with the potential for inflation down the road, first we want to jump start the economy." I heard it this morning from a guest on Charlie Stein's Bloomberg radio show.

The assumption is that inflation is like some big happy puppy that is waiting patiently at the door for his owner to come home and play.

Inflation might be more like my childhood dog -- a crazy mutt who was smart enough to know how to open the door on on his own and who would take off down the street at the first opportunity, determined as all hell that no one would ever catch and confine him again.

Exactly, and why in world do people think that it is necessary or advantageious to "jump start the economy"? The economy does not need jump starting. Jump starting, (loose credit and debt), is what got us into this mess in the first place. More of the same will just make things worse in the long run. Inflation is not growth.