10-11-2016, 11:52 AM
John Knoble Wrote:dollar
.........
If you assume Trump has been casted for a role, it could be to negotiate down foreign-owned federal debt, blame the next economic crisis on the public's bad judgment to elect a non-politician, etc.
The U.S. dollar is the world reserve currency, stronger with uncertainty in reaction to the sustainability of the European Union and thus the Euro. China offers a poor alternative because of non-transparency and
a stronger motive for sudden devaluation to sustain export competitiveness to preserve employment for domestic political stability. This insures low odds of a Trump like cult of personality,
"I am the only one who can fix this and make China great again."
U.S. debt is denominated in dollars, a dollar debt obligation. There is an overwhelming preference for printing down the intrinsic value of the foreign debt
obligation vs. even any talk of negotiation since it would have the same effect on valuation without the subtlety of dilution via printing and Fed's quantitative
easing.
IOW, insanity reigns and the premise of this thread and your own speculation are out of synch with the insane and eventually unsustainable status quo.
Quote:http://www.wallstreetdaily.com/2016/05/0...ury-bonds/Fed has simply created dollars to buy Treasury bonds when demand for their new issuance is uneven. Fed owns a portfolio of U.S. debt paid for with
Published Mon, May 9, 2016 | Alan Gula, Chief Income Analyst
The Federal Reserve holds $4.4 trillion worth of assets on its balance sheet.
Of this total, $2.3 trillion is in U.S. Treasury notes and bonds. These Treasuries are parked in the System Open Market Account, which contains assets acquired via open market operations including quantitative easing (QE).
I bring this up in response to a Bloomberg article penned by Narayana Kocherlakota, former president of the Federal Reserve Bank of Minneapolis.
In the article, titled "The World Needs More U.S. Government Debt," Kocherlakota claims the U.S. government isn't issuing enough bonds to satisfy household and corporate demand.
Well, if there aren't enough Treasuries for private investors, perhaps the Fed should sell off some of its own stockpile of Treasuries. Don't you think?
Of course, this would effectively function as reverse QE, which would cause financial asset prices to fall.
In other words, the Fed won't be shrinking its massive balance sheet and kindly releasing those bonds into the wild anytime soon.
There are too few Treasury bonds for investors, yet the Fed will continue to hold a big chunk of them.....
Fed created dollars which so far have influenced no dilution, in fact the opposite.
Peter Janney's uncle was Frank Pace, chairman of General Dynamics who enlisted law partners Roswell Gilpatric and Luce's brother-in-law, Maurice "Tex" Moore, in a trade of 16 percent of Gen. Dyn. stock in exchange for Henry Crown and his Material Service Corp. of Chicago, headed by Byfield's Sherman Hotel group's Pat Hoy. The Crown family and partner Conrad Hilton next benefitted from TFX, at the time, the most costly military contract award in the history of the world. Obama was sponsored by the Crowns and Pritzkers. So was Albert Jenner Peter Janney has preferred to write of an imaginary CIA assassination of his surrogate mother, Mary Meyer, but not a word about his Uncle Frank.