[familyop]

BTW, when the Fed does eventually tighten up (not now, IMO), yields will soar, which will put a stop to government’s ability to pay the debt. Bond collapse, interest rates will soar. Activity will stop. Government will begin repudiating large chunks of debt and administering “haircuts” to investors. Austerity measures, including drastic tax hikes. Pensioners will suffer their unforeseen haircuts. Our currency will be adjusted way down to make way for resuming exports, etc. Ugly political consequences. No enforcements against local agricultural or small manufacturing competition/starts.

See Argentina.

[palmer]

Basically the Fed has acknowledged there is no real value in treasuries and especially in mortgage securities on strapped American homeowners. They are going to be hard pressed to find a bigger greater fool than themselves. Maybe some extraterrestrials.

[bert]

-——when the Fed does eventually tighten up-——

That will happen soon after the next S&P downgrade that will trigger market action.

The DOJ thuggery will not deter the downgrade if things continue. Those with the reins to the markets have more power than the President

[hinckley buzzard]

Government will begin repudiating large chunks of debt and administering “haircuts” to investors.

The only kink in this scenario is that the largest debt holder of US debt is the Federal Reserve. And they can print their own money ad lib, so no "haircuts" for them.