Yoshua wrote:There's no alternative to the dollar. The GFC showed that the entire system will break down without dollar liquidity.
There's no trust for another currency. Gold isn't practical for global trade.
Cryptos are a joke. Zero trust.
The dollar isn't an eternal gift...but good enough to last long enough for the Americans to watch the world burn down on their plasma screens before the sirens go off.
Yoshua wrote:There's no alternative to the dollar. The GFC showed that the entire system will break down without dollar liquidity.
There's no trust for another currency. Gold isn't practical for global trade.
There's no alternative to the dollar. The GFC showed that the entire system will break down without dollar liquidity.
shortonoil wrote:Today's 30 year auction came off with its lowest yield in history. When money is not worth anymore tomorrow than it is today, it wasn't worth much to begin with.
Armageddon wrote:The U.S. just sold $16 billion of 30-year bonds at a record low yield of 2.17%.
Armageddon wrote:Goldman Expects QE4 To Start With A Bang: The Fed Will Buy $60BN Monthly For 4 Months
What Is Quantitative Easing?
Quantitative easing is an unconventional monetary policy in which a central bank purchases government securities or other securities from the market in order to increase the money supply and encourage lending and investment. When short-term interest rqe iates are at or approaching zero, normal open market operations, which target interest rates, are no longer effective, so instead a central bank can target specified amounts of assets to purchase. Quantitative easing increases the money supply by purchasing assets with newly created bank reserves in order to provide banks with more liquidity.
You and short must be the two most credible economic commentators in the world. Can I have your autographs?
Part of the spin seems to be that the purchasing of the securities below a certain amount doesn't count as being a qualitative easing.
evilgenius wrote:This talk about the dollar does make some sense, given Trump's anti-global agenda. What will the rest of the world do regarding the dollar, if the US moves toward isolationism? I don't think they will move to put the euro into the same place. Instead, it is much more likely we would see some sort of crypto thing happen, but put together in a transparent enough fashion that it can be trusted. That might be possible in this information tracking world. But the dollar is not going to fall apart on its own. The dollar is where it is because of Bretton Woods. We may be headed for a post-Bretton Woods world. Even in such a world there would be need for a reserve currency. It just doesn't have to be the dollar.
While the market has by now fully priced in that the Fed will resume "NOT A QE", i.e. POMOs, i.e., BS-expanding Treasury Purchases as soon as the October FOMC (but more likely November), with Bank of America writing today that the Fed needs a "bazooka of asset purchases," estimating that the central bank needs to add about $300BN of reserves to return to an "abundant’ level", and Goldman predicting that the Fed will unleash no less than $60BN in POMO for the first 4 month of "NOT A QE"...
shortonoil wrote:You and short must be the two most credible economic commentators in the world. Can I have your autographs?
NO!
But, can I have yours? It would go with my other "Dark Side of the Force" memorabilia.Part of the spin seems to be that the purchasing of the securities below a certain amount doesn't count as being a qualitative easing.
So the FED is going to do QE on Thursday, but not Monday when it does POMO. That should clear up the confusion? The FED doesn't want to call it QE because if they do someone is gong to ask: "What happened to the first $20 trillion"?.
It might start a mad rush where everyone starts looking down rat holes!
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