Debt Rattle February 7 2017
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Russell Lee Sharecropper mother teaching children in home, Transylvania, LA. 1939 • Trump To Be Barred From UK Parliament Over ‘Racism and Sexism’ (BB
[See the full post at: Debt Rattle February 7 2017]Talk about howling error. Not by IM but by most everyone else. Only by selling it’s bond and MBS assets will the Fed raise interest rates. All these silly Fed Funds Rate target moves are pretend ‘raising rates”. Not that rates haven’t risen already with 10 year bond yields up 1% since July. I think we can be certain however that the Fed won’t start shrinking its balance sheet anytime soon.
Most don’t remember but Bernanke’s Fed started pretending that they were going to do that back in 2010 but instead we got QE2 nd QE3. If perchance the Fed did start selling its bond holdings in anything but token amounts the effects on the financial markets could be devastating, Already macro liquidity growth globally has stalled and it’s liquidity which keeps financial markets inflated.
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