So if the Fed’s not the source of liquidity for Treasury purchases, who is?
Certainly, the People’s Bank of China and the Bank of Japan are popular Treasury buyers.
This is probably due to inflation expectations driving expectations about interest rate policy – click to enlarge.
With a little imagination one can conceive of where the money’s coming from to buy Treasury bonds.
Presently, record levels of auto loans are backed by cars with negative equity – the debt owed is more than the cars are worth.
The post-crisis car lending lunacy in all its awe-inspiring splendor – click to enlarge.
Why bother with such inconveniences when the bad loans are being securitized in packaged debt offerings and sold to pension funds? And refusing it by not answering my phone any more, since inevitably the caller is someone trying to get me to buy some crap I don't want, or need. The car dealers are the ony one's who bother to leave a message when my phone automatically shunts their call to voice mail, since they are not on my contact list.
Of course, the chief architects, the policy makers – particularly Bernanke and Yellen – provided the blueprint. Well, it was all true and has totally changed my life. There's a reoccurring theme on Zerohedge that bugs me. It's not just a set of ideas or fantasies that some of you like and some of your don't. It appears to me that the Framework is never mentioned in the media, or academia, because it would reveal uncomfortable truths about the underlying matrix of power relations of Capitalistic Society. Not that you need it but JK Galbraith's THE ANATOMY OF POWER is decent, if terse, regarding power structures. Write me at [email protected] Putrid What are we looking at here with The Reset,,,a State takeover of personal property/assets (incl PMs)?More than likely, it has something to do with central bank intervention into credit markets.Though, the Federal Reserve is not the only culprit.That is bound to have severe repercussions down the road. Somehow this always seems to happen at the worst possible time. Public Storage said in April that more of its self-storage customers now seem to be under stress.Credit card lenders including Synchrony Financial and Capital One Financial Corp. mortgages) – at a new all time high as of the end of Q1 2017 – click to enlarge. Over time, it metastasizes through the financial system like a wicked three headed monster.