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Napanee, Ontario | That's what the Fed is there for isn't it?
It creates scarcity by introducing a huge volume of bid pressure that didn't previously exist....thus artificially increasing the price of bonds and lowering interest rates.
if not for the Fed, this whole game would have be kaput five years ago. "Propping up" the market, as many like to refer to is as, is essentially creating scarcity. econ 101. without them, there would be a huge oversupply of bonds that the Gov't is trying to peddle, and interest rates would be miles above where they are now.
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Is inflation on our doorstep?
