# Fed Buying Bonds And Mortgages?



## rjmoses (Apr 4, 2010)

After reading this article,

http://www.bloomberg.com/news/2014-10-24/fed-s-4-trillion-holdings-keep-boosting-growth-beyond-end-of-qe.html

about Quantitative Easy and the Federal Reserve Bank buying $4.3 TRILLION in treasury Bonds and mortgages, I had a BFO question---Where is the the Fed getting this money?

Ralph

Ever get the feeling you're in a gigantic shell game?


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## Gearclash (Nov 25, 2010)

The ag program at the college I went to often stressed the mantra of sustainability. The concept of sustainability is true for many things, including government finance. Anytime I try to wrap my brain around what our government does with money I begin to think "smoke and mirrors" and my head starts to hurt.

Inflation is good. Inflation is good. Inflation is good.

Now get back to work cause your going to need to work more hours to pay the bills . . .


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## SVFHAY (Dec 5, 2008)

I think we will have to redefine value rather suddenly in the future.

For the moment I think the only thing saving us is the general weakness in economies around the world. Where can the rich find a better shelter than here?


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## ARD Farm (Jul 12, 2012)

rjmoses said:


> After reading this article,
> 
> http://www.bloomberg.com/news/2014-10-24/fed-s-4-trillion-holdings-keep-boosting-growth-beyond-end-of-qe.html
> 
> ...


Easy answer, they print it. Been printing for a while now. Problem is, the more they print, the less it's worth.... It's all fiat currency anyway, backed by nothing more than a promise and we all know how good the government is at keeping promises......

I said years ago that ar some point (in our lifetime) that dollar bills will come on a roll, lik toilet paper.

It's a big ponzi scheme, like Social Security has become.

Additionally, ANYTHING BLOOMBERG IS, IS BAD PIZZA. No exceptions.

I cringe when I see that name. Anti Second Amendment bastard.


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## deadmoose (Oct 30, 2011)

ARD Farm said:


> Additionally, ANYTHING BLOOMBERG IS, IS BAD PIZZA. No exceptions.
> 
> I cringe when I see that name. Anti Second Amendment bastard.


^^^^^^^^^^^^^^^^

Yup.


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## rjmoses (Apr 4, 2010)

This looks to me like a real clever way of refinancing $16 trillion Fed government debt at 0% interest.

And printing money with the appearances that there is no inflation! I have not seen one item in the last five years where the price has not gone up, or the size gone down, or both. E.g., my favorite--toilet paper.

Hold on to your hats, boys, this is going to be one helluva ride one of these days. Glad I'll probably be senile when it hits the fan!

Ralph


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## JD3430 (Jan 1, 2012)

Quantitative easing = printing money.
Not a big Glen Beck fan, but he was ringing the QE bell 3, 4 years ago.


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## mlappin (Jun 25, 2009)

JD3430 said:


> Quantitative easing = printing money.
> Not a big Glen Beck fan, but he was ringing the QE bell 3, 4 years ago.


Basically what the Japanese tried to do, and they've had a stagnant economy for what? 10-15 years now?


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## deadmoose (Oct 30, 2011)




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## rjmoses (Apr 4, 2010)

mlappin said:


> Basically what the Japanese tried to do, and they've had a stagnant economy for what? 10-15 years now?


This is said in the wiki: http://en.wikipedia.org/wiki/Quantitative_easing

The key is that QE is done at the expense of pensions and savings. My thought is the end result is we are, once again, sacrificing the future for the present.

Illinois' state pension fund was set up and funded with an anticipated ROI of 8% or better. So, how does 0% returns help the state pensioners? It doesn't!

Ralph.

Thinking about building a financial ark. Cause it is going rain financially 40 years.


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## mlappin (Jun 25, 2009)

http://online.wsj.com/articles/SB10001424052748704444304575628403102379326


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