Wrong again, the Fed buys and holds MBS also. And you are talking world-wide, not just CN. Is the entire world going to dump, I don’t think so.Anonymous wrote:Anonymous wrote:The US treasury market is the most liquid market for anything, in the world, it trades 24/7. China holds 700 Billion out of 36 Trillion. Chump change to Jay Powell. The Fed has cut their balance sheet over 2 Trillion since 2022, they could easily expand to buy the entire 700 Billion if China was to unload.Anonymous wrote:Very possible ruin that is occurring in the bond market will continue, especially if China decides to strategically dump US treasuries.
Another poster had mentioned that the Fed could buy up all that bond and stabilize the treasury market, how exactly would that work and what would be the ramifications? I can’t imagine it’s a simple Execution like that with no consequences
That's part of the picture. "At the end of January, foreign countries owned $1.32 trillion worth of U.S. mortgage-backed securities, or 15% of the total outstanding, according to Ginnie Mae.""
They dump that and good luck finding a mortgage. The real estate (residential) market would collapse.
Anonymous wrote:The US treasury market is the most liquid market for anything, in the world, it trades 24/7. China holds 700 Billion out of 36 Trillion. Chump change to Jay Powell. The Fed has cut their balance sheet over 2 Trillion since 2022, they could easily expand to buy the entire 700 Billion if China was to unload.Anonymous wrote:Very possible ruin that is occurring in the bond market will continue, especially if China decides to strategically dump US treasuries.
Another poster had mentioned that the Fed could buy up all that bond and stabilize the treasury market, how exactly would that work and what would be the ramifications? I can’t imagine it’s a simple Execution like that with no consequences
It limits economic growth b/c the Fed or Treasury constantly needs to get more gold as the economy grows. Totally impractical to switch back now that every major currency is fiat.Anonymous wrote:Anonymous wrote:Anonymous wrote:The Unconstitutional Federal Reserve will be dissolved and money printing will be returned to the treasury and replaced with gold/silver backed Constitutional Currency.
Does anyone remember what happened the last time we had a gold standard?
I’m sure someone on the social security list aged 125-150 can help you with that answer.
The US treasury market is the most liquid market for anything, in the world, it trades 24/7. China holds 700 Billion out of 36 Trillion. Chump change to Jay Powell. The Fed has cut their balance sheet over 2 Trillion since 2022, they could easily expand to buy the entire 700 Billion if China was to unload.Anonymous wrote:Very possible ruin that is occurring in the bond market will continue, especially if China decides to strategically dump US treasuries.
Another poster had mentioned that the Fed could buy up all that bond and stabilize the treasury market, how exactly would that work and what would be the ramifications? I can’t imagine it’s a simple Execution like that with no consequences
Anonymous wrote:Why did we start a war with China? The morons who voted for Trump are going to suffer the most.
Anonymous wrote:The Unconstitutional Federal Reserve will be dissolved and money printing will be returned to the treasury and replaced with gold/silver backed Constitutional Currency.
Anonymous wrote:The Unconstitutional Federal Reserve will be dissolved and money printing will be returned to the treasury and replaced with gold/silver backed Constitutional Currency.