A Wise Member...

[firstenrgy]

TweetOnce wrote:

Germany did print paper in the 20's and it caused hyperinflation but they litterally printed more currency and put it into circulation. After a short while the currency was worthless.
This is a little different then the printing we refer to today. In todays context printing money could mean lowering the fed funds (really the discount rate) which is what the government charges the banks for overnight lending. unfortunatley we are at zero now so not wanting to admit defeat, the fed invents anew term of putting money on their balance sheet. What does that really mean:
The fed goes on the open market and purchases bonds to ARTIFICIALLY lower interest rates in hopes of keeping the economy moving. Now this in theory would be okay if we were a creditor nation and taking or savings to invest in ourselves. We are already running deficits so how are we going to get money to purchase those bonds. Offer OUR bonds on the open market. This drives up interest rates!
The fed came out on the 17th and said they were increasing the amount of paper on the balance sheet (a total smoke screen and double talk) and if you look at the chart the 10 year bond dropped 1/2 a percent in an instant.
Today there was a bond auction to raise SOME of the money to "buy these bonds" and as you can see interest rates are heading up again as our credit rating goes in the toilet (how silly, selling bonds so I can buy them)? Would you sell your car so you have the money to but it back??? Madness!
This balance sheet nonsense will only hold the DE-faltion at bay and if the game is played long enough as it seems is the feds resolve, INEVITABLE inflation will result and we will become a bannana reupublic.

BTW The chart shown does not reflect today's trading which the 10 yr bond reached 2.78% This is only borrowing a PORTION of the money needed. By time all of it is raised. Interest rates will be higher than the 3% that it was before they started the ponzie scheme!
The old chart...

[firstenrgy]

TweetHere is the current chart...
Interest rates are climbing... who would have known

[firstenrgy]

TweetObamanomics at work!

[daved150]

Tweetyep...fuked up!

[pigmeat]

Tweetim going to try that next time im broke...spending more money,lol...what a dipshit

[daved150]

Tweet

im going to try that next time im broke...spending more money,lol...what a dipshit

wanna hear something funny...and totaly true? i used to do that...we (caresales people) ALWAYS did that!! times tuff? having a bad month? go buy a suit! not just any suit, pick yourself up an armani or something sharp!! grab some nice ties....and bam!!! you back rocking the house. if it was a real bad period, like 90days or something....go buy a boat!!! it's how we do. obviously, i dont do that anymore, but the more we baught, the more we'd make!! thats how i got jetski's and boats an shyt, lol. unfortunately, it's just not there anymore...it's not the salesperson, it the economy...and that shyt dont work on that!

[deepsouth]

TweetI will say this- before I retired from Dow Chemical Co.(yes retired-LOL)- their phylosophy(sp) is to spend money in the trough to make better profits in the up cycle- it has worked up till now, but when the Saudi deal fell through- it bit them. Just goes to show some believe in spending in the down cycle