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blitzar

> kick that can down the road

With two left feet and a couple of swings and misses, the can isnt in much danger.

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You think the US collapse is going to happen right now despite this action?

You think they saved the human race by selling some EURJPY on Friday?

Impossible to know. The US sits on the precipice of a bond interest death spiral.

the fed can bring the bond yields down, it's not really a problem

How will the fed do that? What will the side effects be? Why didn't it do that at the latest FOMC?

Qe, yield curve control or possibly other market operations. There won't be any real consequences, it's just an asset swap. They buy bonds and in turn create new interbank reserves.

If there are no bad consequences, why haven't they done it yet?

I'm not sure. Probably because they want to maintain the appearance of central bank independence.

The yields aren't even that high. They were much higher in the past.

QE is effective when inflation is low or negative. It creates a larger money supply. Inflation is already high.

It doesn't change the M1 which is relevant for inflation.

https://news.ycombinator.com/item?id=49147536

M2 and MB are also relevant.

Yes, everyone knows it's a button you press. Trump has been shouting about that for the last year.

> With two left feet

...and about two feet left before the can hits the wall.

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