I won't be surprised if at future meetings we see statements like this: Today the Fed has decided to set a target of .75% on the 2-year note; 1% on the 5-year bond; 1.75% on the 10-year; and 2.25% on the 30-year. Then the fed would have sorts of bullets... For example, the fed could cut the target on 30-year bonds 50 bps. All other targets remain the same. When the entire yield curve is flat at 0. Then and only then I will agree the Fed is out of bullets.
You do realize that markets trade on supply and demand. You think anyone's going to take a 30 year at those levels?
thats the point the only ones that the fed wants buying debt is cental banks they want everyone else to put the money to play
2.25 is only 35 basis points from here. Just a few more % on the ZB. But they aren't out of bullets even after they make the yield curve all 0. Then they can start printing money and sending it to everyone personally... they can also buy the entire stock market etc. Eventually they'll put the fear in people of inflation and get people investing. If they get all of the other central banks doing the same thing in a equally hyperinflationary fashion, we will all see the greatest commodity boom in nominal terms -ever-.
6 months ago it took $1BILLION Zimbabwae Dollars (?) to buy 2 cans of beans and a can of soup. Think we'll top that? Think that will be good for anyone's finances?
A size 37 shoe! But why stop at stock markets? A fail to deliver of physical commodities would qualify too. Most clearing members are already dubbed as too big to fail. Is it even possible for a futures exchange, the ultimate of contract guarantors, be NOT too big to fail?
I think to even compare the economies, society and people of the developed western world to Zimbabwae is beyond ridiculous. Not a constructive comment at all. Inflation and High Inflation is on the horizon. Zimbabwe is not.
Your comment is STUPID. It's not about "economies, societies or people"... it's about the inflationary debasement of currency. Doesn't matter where it occurs, the result is the same. We wouldn't need to get to "1Billion:1" on anything... just inflate and debase us by 100:1, or even 10:1 and see how miserable everybody is.
You asked if we will top the debasement of Zimbabwe. My answer is clear. If you had used a more rational figure. then I wouldn't have called you on it.