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Thanks Letsbereal ... so they are trying to keep interest rates down?
Also ..."So the government sells bonds but buys them as well."
Are we considering the FEDERAL RESERVE to be US Government?
Doesn't sound like an actual 'legal' purchase of the bonds to me.
... just trying to understand.
They've been doing this for quiet some while now but via so-called special vehicles/proxies.
These are special institutions errected by the government to play the markets and act as bond buyers with taxpayers money given to them by the FED.
They must be very afraid and desperate enough to conduct these kinda operations in the open now.
They also had the idea (or maybe they already are doing it) to give the banks taxpayers money under the condition they buy government bonds with it.
In essence the same thing but in a diffirent way 'eating your own dogfood' indeed with the only goal to keep interest rates low.
They painted themselves in the corner with this because if interest rates rise the US debt payments become unpayable immediately and that is the end of it.
So they are lieing when the FED discusses dates in the future when they are supposely are going to higher interest rates.
They can't and they won't! It's a scam.