Let me make a wilde guess here, the FED is buying its own bonds via UK?

[Mega]

http://www.zerohedge.com/article/chi...nential-accumu

Mike

[ASH]

Re: Let me make a wilde guess here, the FED is buying its own bonds via UK?

http://www.zerohedge.com/article/chi...nential-accumu

Mike

Seems to me that there is no way the Fed can monetize something by stealth, since whatever it buys, regardless of the intermediary, has to show up on its balance sheet in some form. Even if the Fed isn't going to hold the Treasuries directly, it has no way to pay an intermediary to buy and hold them without taking some asset from the intermediary onto its balance sheet... that's how the Fed "buys" anything.

Also, for the sake of pedantry, the Fed is not the same thing as the Treasury... it wouldn't be buying "its own" bonds -- it would be buying Treasury bonds.

I don't read Zerohedge regularly, but I must say that 95% of the Zerohedge posts which are cross-posted to iTulip for comment sound 'off' to me.

[vinoveri]

Re: Let me make a wilde guess here, the FED is buying its own bonds via UK?

Seems to me that there is no way the Fed can monetize something by stealth, since whatever it buys, regardless of the intermediary, has to show up on its balance sheet in some form. Even if the Fed isn't going to hold the Treasuries directly, it has no way to pay an intermediary to buy and hold them without taking some asset from the intermediary onto its balance sheet... that's how the Fed "buys" anything.

Also, for the sake of pedantry, the Fed is not the same thing as the Treasury... it wouldn't be buying "its own" bonds -- it would be buying Treasury bonds.

I don't read Zerohedge regularly, but I must say that 95% of the Zerohedge posts which are cross-posted to iTulip for comment sound 'off' to me.

just give it another decade or so... and you too will gradually be absorbed into the tin-foil hat crowd

With resprect to the Fed not being able to stealth monetize, I would submit that although it may not be occuring, does not mean it can't; say GS or another broker-dealer wants to borrow $1B from the Fed ... does it need to put up collateral (I assume the answer is yes but don't know).? If so, what qualifies as collateral ... some sort of debt obligation typically, e.g, Treasuries, MBS, .... a promissory not from XYB bank of Uganda .... All a bank needs to create an asset, which it can exhange for Fed money is, a promise to pay the note anyway, and these can be generated effectively ad infinitum, no?

Tin foil hat nothwithstanding, it's a giant shell game where new peas can pop up anywhere, and although these new appearing peas (credit) must have a debit entries on some balance sheet, with enough shells and peas obfuscation becomes less difficult I would suppose.

[Anon21456]

Re: Let me make a wilde guess here, the FED is buying its own bonds via UK?

Zero Hedge can post up to 20 posts per day. Some are very interesting, very detailed, technical. Some are mainly a shock factor designed to attract crowds.
I love both types of posts, in fact I prefer the crazy ones before they are funny, absolutely non-serious and borderline crazy.