Trump calls on fed to weaken the dollar. Yes, weaken.

Cheap money. That’s the elephant in the room. Cheap money, or more specifically ARTIFICIALLY cheap money, leads to booms and busts. The housing crisis was the result of artificially cheap money and then after that we saw even CHEAPER money.. cheaper than ever before in history.. so unless somehow the fed became geniuses out of nowhere and got it right for the first time ever, we’re in danger of this happening yet again because when there’s too much money it has to go somewhere and because people are imperfect the excess money tends to be misallocated because of distorted market signals caused by central planning of the world’s largest economy.

we’re in danger of this happening yet again because when there’s too much money it has to go somewhere

QE3 ended in October 2014. The Fed has been reducing their balance sheet and raising rates.
 
Can you imagine how repubs would react if Obama had suggested something so retarded? Hell, you could write an entire book on the double standard of Obama and Trump called “If Obama had done that..”

Trump presses Fed to weaken dollar

Leave it to republicans to blindly defend this shit like anything he does.
What jobs would you create to give the peasant a better standard of living? Enlighten us all how it is to be done. We had peole going from working to working poor because of stagnant wages and hours worked. Salaries stayed less then inflation and this with near zero interest rates which screwed over people with bank accounts.
 
Cheap money. That’s the elephant in the room. Cheap money, or more specifically ARTIFICIALLY cheap money, leads to booms and busts. The housing crisis was the result of artificially cheap money and then after that we saw even CHEAPER money.. cheaper than ever before in history.. so unless somehow the fed became geniuses out of nowhere and got it right for the first time ever, we’re in danger of this happening yet again because when there’s too much money it has to go somewhere and because people are imperfect the excess money tends to be misallocated because of distorted market signals caused by central planning of the world’s largest economy.

we’re in danger of this happening yet again because when there’s too much money it has to go somewhere

QE3 ended in October 2014. The Fed has been reducing their balance sheet and raising rates.
I honestly haven’t looked at their balance sheet in years but I’m really interested in seeing how they unwind it. Last I checked they still had over 2 trillion in MBS. Have they found a market for it all yet?
 
Cheap money. That’s the elephant in the room. Cheap money, or more specifically ARTIFICIALLY cheap money, leads to booms and busts. The housing crisis was the result of artificially cheap money and then after that we saw even CHEAPER money.. cheaper than ever before in history.. so unless somehow the fed became geniuses out of nowhere and got it right for the first time ever, we’re in danger of this happening yet again because when there’s too much money it has to go somewhere and because people are imperfect the excess money tends to be misallocated because of distorted market signals caused by central planning of the world’s largest economy.

we’re in danger of this happening yet again because when there’s too much money it has to go somewhere

QE3 ended in October 2014. The Fed has been reducing their balance sheet and raising rates.
Just checked it, looks like they’re still holding 1.5 trillion in MBS and several trillion in treasuries. I wouldn’t exactly say they’ve unwound a damn thing yet. That’s quite a lot of money to be concerned about, you don’t agree? They can only sell off what someone wants. If there’s no market for those MBS then how can we realistically expect them to get a handle on potential inflation? Especially in the face of them still continuing to lower rates as it is?
 
Anyone who’s paid attention to the last 30 years of the boom and bust cycle in this country should be legitimately concerned about the fed still holding almost 4 trillion in assets
 
Cheap money. That’s the elephant in the room. Cheap money, or more specifically ARTIFICIALLY cheap money, leads to booms and busts. The housing crisis was the result of artificially cheap money and then after that we saw even CHEAPER money.. cheaper than ever before in history.. so unless somehow the fed became geniuses out of nowhere and got it right for the first time ever, we’re in danger of this happening yet again because when there’s too much money it has to go somewhere and because people are imperfect the excess money tends to be misallocated because of distorted market signals caused by central planning of the world’s largest economy.

we’re in danger of this happening yet again because when there’s too much money it has to go somewhere

QE3 ended in October 2014. The Fed has been reducing their balance sheet and raising rates.
I honestly haven’t looked at their balance sheet in years but I’m really interested in seeing how they unwind it. Last I checked they still had over 2 trillion in MBS. Have they found a market for it all yet?

I honestly haven’t looked at their balance sheet in years but I’m really interested in seeing how they unwind it.

Slowly.

Last I checked they still had over 2 trillion in MBS. Have they found a market for it all yet?

Guaranteed MBS, never missed a payment, why do they need to find a market?
 
Cheap money. That’s the elephant in the room. Cheap money, or more specifically ARTIFICIALLY cheap money, leads to booms and busts. The housing crisis was the result of artificially cheap money and then after that we saw even CHEAPER money.. cheaper than ever before in history.. so unless somehow the fed became geniuses out of nowhere and got it right for the first time ever, we’re in danger of this happening yet again because when there’s too much money it has to go somewhere and because people are imperfect the excess money tends to be misallocated because of distorted market signals caused by central planning of the world’s largest economy.

we’re in danger of this happening yet again because when there’s too much money it has to go somewhere

QE3 ended in October 2014. The Fed has been reducing their balance sheet and raising rates.
Just checked it, looks like they’re still holding 1.5 trillion in MBS and several trillion in treasuries. I wouldn’t exactly say they’ve unwound a damn thing yet. That’s quite a lot of money to be concerned about, you don’t agree? They can only sell off what someone wants. If there’s no market for those MBS then how can we realistically expect them to get a handle on potential inflation? Especially in the face of them still continuing to lower rates as it is?

Latest release.

upload_2019-8-11_15-16-40.png


Release just after QE ended.

upload_2019-8-11_15-17-47.png


$707 billion smaller.

They can only sell off what someone wants.

They don't have to sell, MBS will mature over time.

If there’s no market for those MBS then how can we realistically expect them to get a handle on potential inflation?

These are guaranteed MBS, they could sell them in an instant.
 

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