Who Is The New Secret Buyer Of U.S. Debt?
JWR’s Comment: In December of 2013, when the protracted rumors of the Quantitative Easing taper finally came to fruition, I posted my conjecture that to compensate for the lost dollar value of the taper, the Fed would make backroom deals with one or more nations to either: A.) Swap debt purchases (their ugly paper, for ours), or B.) Secretly buy more of our own debt, through intermediaries. Based on the Zero Hedge report, it looks like Yellen & Company chose Option B. So here is my next prediction: The truth and substantive details about this sordid financial legerdemain will emerge sometime early in the next U.S. Presidential administration, when President Bolt Hold Open (BHO) is happily playing golf and paiderastia in Hawaii.
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Fed QE Has Nothing to Do With Rising Stock Prices. My favorite saying from my research classes in school was “correlation does not mean causation.” This is a good explanation of why. Also, if you admire “spurious correlations” you might want to check out This web site to see some amazing examples.
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