You are viewing a single comment's thread from:
RE: Can the Bond Bubble be Unwound in an Orderly Fashion?
What do you think about the idea that central banks will just buy their own bonds with freshly printed currency, to prevent bond yields spiking?
It's been noted that many foreigners have been selling US treasuries, for example (the Chinese, the Saudis), but yet the interest rate doesn't seem to reflect this. Who's buying these bonds? I suppose it must be the Fed quietly buying them.
If rates did spike, would this spell doom for pension funds, and all the debtors of the world, like government? It seems to me there is a motive to control these markets. And if this is the case, then they are just pushing the default onto the currency, and risking the market rejecting the currency. Or am I mad?
Anyway, great post, as usual.
@bayon Money printing and buying bonds is what they have been doing for the last decade and now they think they can unwind that operation which entails not buying any more bonds and also selling the ones they have on their massive balance sheets. The $64k question is whether they will succeed doing that without creating a systemic crisis.
pls listen to the interview with Jim Rickards June 23rd, 2017
greetings from a #steemsilvergold member
Right, I see. I'm relatively new to this strange world of finance, I came to it from cryptos. It's 'Alice in Wonderland' stuff, a market where an issuer buys his own product from himself with money he made from nothing, it seems to violate the definition of the word 'market'.
Thank goodness I discovered people like Jim Grant, and yourself. The Economist and FT just confused me further.