Last week it was toilet tissue and hand sanitizer
The inflation is exploding out of control!
Perhaps better than China, but who knows?
If the Dow Jones continues falling like it did in the last month, in 6 months it will be negative.
It’s not going to happen, and neither is the FED going to buy up the entire treasury market.
Likewise, shutting the economy down tends to be deflationary. So is the oil price drop. Monetary policy is reversible. Fiscal policy to the extent that it’s loans is too.
Not at all clear to me where we come out on inflation.
I’m confused. I thought it was the other way around
https://libertarianinstitute.org/blog/meet-the-new-boss-at-the-fed/
https://finance.yahoo.com/news/feds-cure-risks-being-worse-110052347.html
How do they get the money to buy the bonds? They simply print it!
Monetizing the debt...not good
That would essentially mean no interest on the debt. Because the FED sends the interest on the debt back to the government minus a small fee. Essentially refinancing the debt. Something President Trump has talked about.
What ever happened to the concept of “calling in loans” when liquidity is needed? Guess they really WERE all “liar loans”.... And, so much for assurances they’ve been “stress testing” all the banks....
Trump is nationalizing the Federal Reserve. Driving them to zero interest in effect made them irrelevant. Now he’s merging them with the US Treasury department with the endgame being the end of the Fed.
This new $2 trillion stimulous package consists of dollars being issued at zero interest. They carry no debt and will be put into circulation to start paying off old dollars that carry debt.
So no the Fed is not buying the US Treasury.