FED to taper QE?

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Re: FED to taper QE?

Postby Pixel8r » Fri May 02, 2014 4:34 pm » Safari Mobile 7.0 Safari Mobile 7.0  iPad iPad  Screen Resolution: 768 x 1024 768 x 1024

I am starting to think that the tapering of QE is a big fat lie and actually the debt purchasing is still going on via some undercover method. I mean if they actually were buying billions less treasuries each month we would be seeing rising interest rates, because the debt still needs to be sold each month.

It turns out tiny little Belgium is suddenly buying loads of UST since the fed taper has begun. Something smells very fishy to me.

According to US Treasury data released on Tuesday, Belgium’s holdings of US debt rose by a further $30.9bn during February, to reach $341.2bn.


“We suspect that the increase in Belgian holdings may be the product of another entity moving their holdings into the nation rather than Belgium itself purchasing such a vast amount of Treasuries.”


http://www.ft.com/cms/s/0/a1de1546-c489 ... z30ZlQjBvh

If the QE was continuing undercover, how would it show up? I guess it would show as weak dollar after a while. The can't have everything their own way, exponentially increasing debt levels, cheap rates, booming stock market and strong currency.
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Re: FED to taper QE?

Postby Pixel8r » Thu Jul 31, 2014 3:21 pm » Safari 7.0.5 Safari 7.0.5  Mac OS X Mac OS X  Screen Resolution: 1920 x 1200 1920 x 1200

So the fed tapers the QE via another $10 billion off it's monthly bond purchases and promises to still keep rates low.

How is this happening? If there is less buying by the fed the bond yield should be increasing unless there is equal new buying coming from other sources. Underground QE?
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Re: FED to taper QE?

Postby warpig » Thu Jul 31, 2014 3:41 pm » Google Chrome 36.0.198 Google Chrome 36.0.198  Windows Seven 64 bits Windows Seven 64 bits  Screen Resolution: 1680 x 1050 1680 x 1050

I don't think rates will stay low for the reasons you mention above.
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Re: FED to taper QE?

Postby Pixel8r » Thu Jul 31, 2014 3:59 pm » Safari 7.0.5 Safari 7.0.5  Mac OS X Mac OS X  Screen Resolution: 1920 x 1200 1920 x 1200

warpig » Thu Jul 31, 2014 4:41 pm wrote:I don't think rates will stay low for the reasons you mention above.

Yeah but we have been saying that they will increase, due to the fed not buying as many bonds for some time now and still money remains cheap! The fed is promising to keep reducing purchases (due to finish completely by October) AND keep rates low. It also is releasing miraculous GDP numbers, from negative in the Q1 to extremely positive in Q2. We seem to be in a make believe world which will only get worse as we move into the election cycle, US in November and UK in May...

I wonder how they are keeping yields low now they are buying $55 billion less bonds per month. Unless we can find some source which is taking up the slack rates should be increasing massively right now.
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Re: FED to taper QE?

Postby warpig » Thu Jul 31, 2014 4:29 pm » Google Chrome 36.0.198 Google Chrome 36.0.198  Windows Seven 64 bits Windows Seven 64 bits  Screen Resolution: 1680 x 1050 1680 x 1050

It's still China by the looks of it.

http://www.bloomberg.com/news/2014-07-2 ... e-day.html
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Re: FED to taper QE?

Postby Pixel8r » Thu Jul 31, 2014 4:58 pm » Safari 7.0.5 Safari 7.0.5  Mac OS X Mac OS X  Screen Resolution: 1920 x 1200 1920 x 1200


China or the fed by the backdoor :think:

Can't see why China would be buying and why they would be trying to hide their buys, can you?
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Re: FED to taper QE?

Postby warpig » Thu Jul 31, 2014 6:03 pm » Google Chrome 36.0.198 Google Chrome 36.0.198  Windows Seven 64 bits Windows Seven 64 bits  Screen Resolution: 1680 x 1050 1680 x 1050

They have so much money it must be difficult to spend it. Perhaps it's the best worst option.

Pixel8r » 31 Jul 2014 17:58 wrote:China or the fed by the backdoor :think:

Can't see why China would be buying and why they would be trying to hide their buys, can you?
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Re: FED to taper QE?

Postby Stun Lee and Win » Thu Jul 31, 2014 8:39 pm » Google Chrome 36.0.198 Google Chrome 36.0.198  Windows Seven 64 bits Windows Seven 64 bits  Screen Resolution: 1920 x 1080 1920 x 1080

Pixel8r » Thu Jul 31, 2014 5:58 pm wrote:
Can't see why China would be buying



China gets to prop up the value of their enormous treasury holdings. Chinese companies can continue to sell goods to the US. The US agree to help keep down the price of shiny while the Chinese are buying enormous quantities of it. The US gets to finance their government deficits. Bingo, full house, everyone's a winner.

I would point towards my post from last November explaining that and predicting why the Fed would apparently taper while at the same time interest rates would stay low. Nothing has changed since then.
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Re: FED to taper QE?

Postby Laura » Thu Jul 31, 2014 10:21 pm » Google Chrome 34.0.184 Google Chrome 34.0.184  Android Android  Screen Resolution: 960 x 544 960 x 544

Stunley has it.
Do you also get the impression that there a world controlling element to all this?
Another layer beyond the nationhood badges?
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Re: FED to taper QE?

Postby Pixel8r » Sat Aug 02, 2014 5:24 pm » Safari Mobile 7.0 Safari Mobile 7.0  iPad iPad  Screen Resolution: 768 x 1024 768 x 1024

That makes sense to me Stanley, I guess things change when they stop getting the metal.
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