Friday, July 12, 2013

Fed is Very Concerned About Rise in Rates

armstrongeconomics.com / By Martin Armstrong / July 11, 2013
Interest Rates are not actually within the scope of the Fed’s power. It can create a base rate, but everything from there is indirect. That is why the Fed bought in 30 year bonds. It was hoping to create a shortage of long-term to reduce mortgage rates and encourage capital to buy mortgages. Everything they do is trying to INDIRECTLY manipulate the markets because they have NO POWER to actually dictate to the markets.
The Emperor is bare ass NAKED! He never had any clothes!
This is a CONFIDENCE game. The Fed has been going around to the major banks warning them that their models will fail and need to be re-calibrated. The Fed realizes it has painted itself into a corner and cannot move. So the comments are trying to confuse the markets and hopefully prevent the bonds from collapsing. This is what has been going on. The Fed is telling the banks there will be NO FLIGHT TO QUALITY.
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