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Banjo
 

Registered: Feb 2002
Posts: 3302

 

03-10-12 01:50 PM

http://www.marketwatch.com/story/fe...ying-2012-03-07

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morganist
Moderator

Registered: Sep 2008
Posts: 3404

 

03-10-12 02:09 PM

Isn't that an oxymoran increasing economic growth through stimulus without inflation?

Surely any introduction of money supply will increase inflation. Regardless the liability of the central bank will make it more volatile.

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DollarBondsCL
 

Registered: Feb 2012
Posts: 107

 

03-10-12 02:42 PM

FED is hoping that sheeple will be too mesmerized to realize this is more quantitative easing.

Today in America you have 2 kinds of people

#1 The true idiots who will swallow literally any kind of lie forever.

#2 Woken up Americans who won't buy lies of any kind anymore.



END THE FED, NATIONALIZE THE PRIVATE CENTRAL BANK

END THE PERPETUAL DEBT SYSTEM

RON PAUL

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tropicalknight
 

Registered: Jun 2006
Posts: 44

 

03-10-12 04:43 PM

The Fed is doing these QEs for one simple reason: to fund US budget deficits. We are at interest rate levels where rate changes are negligible to incentive impacts. In fact, the trade is so carried out and frontran that an increase in the interest rate (the opposite of what the fed proposes) would signal an end to easing and an urgency to get out of treasury bonds and into more risky assets.

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bwolinsky
 

Registered: Jul 2008
Posts: 4546

 

03-10-12 09:51 PM

I suppose the trick will be figuring out when the curve starts to shift, how much that shift needs to move before we get an inverted market or rising rates.

My bet is if there's ever a 25 basis point parallel shift up, that should be the exit signal for a lot of people, but, admittedly, that'll be way too late.

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morganist
Moderator

Registered: Sep 2008
Posts: 3404

 

03-10-12 10:49 PM


Quote from bwolinsky:

I suppose the trick will be figuring out when the curve starts to shift, how much that shift needs to move before we get an inverted market or rising rates.

My bet is if there's ever a 25 basis point parallel shift up, that should be the exit signal for a lot of people, but, admittedly, that'll be way too late.



What I want to know is why inflation is so low. I know you are going to say because the market has declined because of wage deflation but the ability to purchase foreign goods and other issues should have created a much higher level of inflation.

Any thoughts.

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