Treasury Yields and Dollar Index – Professional Edition

3 Responses to Treasury Yields and Dollar Index – Professional Edition

1. 

   TraderJim on October 30, 2008 at 9:05 am

   Great analysis Lee

   This current article by Bob McTeer on the FED balance sheet and monetization will put to rest the monetization/hyperinflation hyperbole.

   http://www.forbes.com/opinions/2008/10/28/federal-reserve-inflation-oped-cx_bm_1029mcteer.html

2. 

   TraderJim on October 30, 2008 at 11:23 am

   Take the govt. out of GDP and we are down +10%.

   Using govt.to maintain production is an economic dead end.

3. 

   caliboy on October 31, 2008 at 8:33 am

   TraderJim,

   Thanks for the McTeer reference.

   Good simple explanation of Fed sterilization of liquidity injections to date.

   Of course, now that the Fed is entering ZIRP, attempts to prevent reserves from swelling, in the context of falling demand for debt origination, and dropping the FFR to zero are no longer considerations.