President Trump: The NEW one and only politics thread

You must have slept through quantitative easing and the time since them in which the Fed has been rolling over the $4.5 trillion in Federal debt and agency bonds it purchased with money conjured out of thin air.

What "market" are you talking about? There is no market. ... there are just gamblers front running the Federal Reserve for as long as the scheme they have concocted holds up -- it is a house of cards. You posted like there is this market with buyers and sellers setting the price of money. There isn't. There is a very powerful organization that has been given obscene dictitorial power with its thumb on the scale of that finance. It has suppressed the overnight lending rate to near zero (free money!) for close to a decade now, and it hastaken over 15 to 20 percent of the U.S. treasury and agency debt market by conjuring currency out of thin air and becoming the biggest buyer. When you have a guaranteed buyer of debt out there -- someone creating a put under the market -- no, there is no "market" to "disagree violently." Until the scheme falls apart.

Telling me that there is a "market" and that it isn't challenging it is like telling me that the Soviet Union was a model economy in 1973. They have price fixed the debt markets to keep the rate of interest ridiculously below the real rate of interest. Price fixing schemes ALWAYS end with a mess.

One of two things happens: 1) They get in deeper and maybe they manage to suppress rates longer. I suspect that will happen. Next crisis, we will see QE4 and the balance sheet will expand further to try to kick the can down the road or 2) They actually follow through on unwinding their balance sheet sometime soon, which is when rates spike and we drown in interest payments and we pay the price for what they did sooner rather than later.

The rest of your post. ... it's fantasy. Things have costs. We are living with what the Federal Reserve did (it is all about monetizing more and more debt) because of that fantasy society in which we can spend way beyond our means (and in reality, we are largely talking about political corruption and waste).