Formerly NE North Dakota, now NW MN | either Fisher or Lacker was running around this summer talking about how the fed was becoming worried about interfering to much with the treasury market..... Well they announced more buying yesterday and so far treauries have sold off lightly. Someday will wake up and find out the only people playing treasuries are the fed, the social security trust fund, and whichever fund manager is last out the door.
traditional relationships and correlations are breaking down. Things make less and less sense. Increasingly, strings the fed used to pull are now strings they push. Pm action is just an example of these traditional correlations breaking.
I don't feel that hyperinflation is the next forced step tho. I feel the fed losing control of interest rates will more likely lead to protracted deflation. Eventually they will attempt to print out of it, but not immediately. |
frytown?
