by "Andy F." <never.mind@[EMAIL PROTECTED]
>
Mar 13, 2008 at 01:03 PM
"Werner" <whetzner@[EMAIL PROTECTED]
> wrote in message
news:f6fef69f-edbc-4903-b076-a27dea3d1a8a@[EMAIL PROTECTED]
Mar 12, 11:43 am, "Andy F." <never.m...@[EMAIL PROTECTED]
> wrote:
....
>
> That's almost true - apart from the bit about printing money and
> hyperinflation.What the Fed are actually doing is exchanging Treasury
> bonds
> for mortgage- backed securities.This doesn't effect the money supply.
>
>You will have to explain how Treasury bonds are not money or like
>money and why the price of oil and gold are going up, if not because
>the Fed is making money.
Treasury bonds aren't money because you can't spend them.Same reason why
the
mortgage backed securities they're being exchanged for aren't money.
> What they are doing is bad enough. By buying $200 billion worth of junk
> bonds the Fed is exposing itself - and ultimately the US taxpayer - to
> $200
> billion of potential losses.
>
>
