re: US Treasury is doubling down on buybacks to try to supress the yield

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sure thing

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Tell me which new currency is being created to make these buys.

Thanks I see you guys posted what I was thinking, this statement makes no sense:

"This is not QE the debt stays outstanding". So what, the treasury is just giving billions to bondholders as a good will gesture, and they get to keep the bonds......

The treasury buys the bonds, the money flows into the supply. You try and fix the Yen issue and create inflation on the backside.

And you are all right, its just a juggling act trying to fix symptoms when the problem is the enormous debt.

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We either need to have a dramatic change in what people see as the contract between the government and its people OR we need to get real and 50 years of cutting taxes was a disastrous mistake and the people who mostly led that movement are going to be the bomb that blows the whole American system up.

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We have a spending problem. That’s why the deficit is so large. The contract b/w the Gov & The People was hijacked a long time ago.

Manipulating the yield curve is never what I’d refer to as healthy, …. but the Fed is out of tricks .

Congress has saddled the country with so much sovereign Debt, that the options are very, very limited.

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It’s not QE.

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It absolutely is not and you’re correct to make the distinction.

Stout is right that the buybacks are a deliberate effort to support/suppress long yields and that dismissing them as pure non-QE “liquidity” underplays the policy intent and market perception. He is imprecise if they treat it as equivalent to Fed QE money-printing. It is a real but limited debt-management tool being used more forcefully; the bigger problems of deficits, debt stock, and interest costs remain.

Stout is a great poster who has the eye over the target. The only problem, tech could, could, go on a boom like we’ve never seen before. We are on a frontier, space privatization will be a huge boom. Once we start mining asteroids…..our grandkids could very well be doing that.