What's this rumor that the Fed will buy $1 trillion in US bonds before midterm elec.

Discussion in 'Economics' started by bond_trad3r, Sep 14, 2010.

  1. Bone,

    Perhaps I have misunderstood your argument... if not, I must respectfully disagree with the idea that our economic invincibility is eternal... we're becoming just like every other major military power that crumbled under it's own bloated debt... where are the English, Spanish, Dutch or Roman economies these days? History has proven over and over that high-debt ultimately destroys any great power, and that is exactly what is happening to the US now... if you'd like to see how historically obvious this should be, read through Paul Kennedy's book titled "The Rise and Fall of the Great Powers"... authored in 1994. Every great power in history has expanded it's military and social programs to the point of its own insolvency... sound familiar?

    How did Reagan lead us from the world's largest creditor nation to the world's largest debtor in eight years?

    I wish it wasn't so, but the incurable problem in humanity is greed and arrogance... the US is not immune, and I maintain we're looking at our golden age in the rear view mirror. We have been been growing a credit bubble since the 1970s... we managed to scrape by on credit for 30 years, but that time has gone... we're just a decade or two away from the time when the world becomes much less eager to hand us credit cards in the form of bond purchases.
     
    #41     Sep 14, 2010
  2. bone

    bone

    Gatling:

    You are entirely correct.

    Try timing the short. Long term. On your nickel. That's my point.
     
    #42     Sep 14, 2010
  3. ammo

    ammo

    floating the rumor is a lot cheaper than printing
     
    #43     Sep 14, 2010
  4. FED will keep printing for many years to come.

    USD will never lose value because the whole world will keep buying

    Inflation will never pick up because US will not lose value

    Interest rates will never rise because whenever it tends to rise Treasury will buy enough bonds with printed money

    And life goes on

    long live the USA
     
    #44     Sep 14, 2010
  5. Daniel12

    Daniel12

    Now that's quality sarcasm bravo :D
     
    #45     Sep 14, 2010