An economics, investment, trading and policy blog with a focus on Modern Monetary Theory (MMT). We seek the truth, avoid the mainstream and are virulently anti-neoliberalism.
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Wednesday, February 25, 2015
Brian Romanchuk — U.S. Economy: This Was Not Supposed To Happen
Brian covers a lot of ground in this analysis, which includes a journey through the natural rate doctrine and its use by the Fed.
They have to be reeeeaaaallllly careful how they do this or they could "bankrupt" themselves...
ReplyDeleteAlso,
ReplyDeleteThey have been buying about $20B / month in MBS lately (dealing with pre-pays due to the refis last months...):
http://newyorkfed.org/markets/ambs/operations/lastTwenty.html
I'm sure they are "getting a good deal for the taxpayer" in the process....
If they ever stop "rolling over balances", imo we could get one hell of a bond rally....
rsp,