tag:blogger.com,1999:blog-1527840491496268397.post6423560070156591963..comments2024-03-08T11:20:30.095-07:00Comments on Credit Bubble Stocks: The Coming Bond Bear Market: Will "Inflating our troubles away?" Work?Unknownnoreply@blogger.comBlogger1125tag:blogger.com,1999:blog-1527840491496268397.post-30339416050387295452017-05-02T22:10:54.577-07:002017-05-02T22:10:54.577-07:00Perhaps by keeping its debt duration shorter than ...Perhaps by keeping its debt duration shorter than its trading (and lending) partners, the U.S. is signalling that it will not inflate because it has relatively little incentive to inflate. But when that posture changes and the U.S. begins to issue much more long term debt, the interest cost will high. The solution will be for the Fed. to support the U.S. debt by buying it and placing it on its balance sheet. As it is, Fed purchase of U.S. sovereign debt is a skimpy fig leaf of cover over naked money printing. Although the Fed could simply cancel the treasury debt on its balance sheet to make room for more, there is no reason to cancel because there is infinite room for more fig leaf.Anonymousnoreply@blogger.com