A Reuters poll of 16 primary dealers showed all expected the Federal Reserve to return to buying bonds.
All but one predicted the announcement would come at the Nov. 2-3 meeting.
Primary dealers are the dealers that have been specifically designated and cleared to trade directly with the Fed. They include the usual suspects: Goldman Sachs, JPMorgan and Morgan Stanley. By buying bonds, the Fed will be creating money out of thin air and thus increase the money supply.
...and thus driving up the cost of food and energy - but no worries, that's not used to calculate the true cost of inflation in the United States (eating and heating your home is optional, doncha know). ...and thus seniors will not be getting any COLA on their Social Security payments as manufacturers have no choice but to raise prices to defend any margin whatsoever.
ReplyDeleteBen and Timmah to the rescue. Change we can believe in.