"but has little control over long-term rates"......remind me just one more time. What percentage of the long end is the fed buying? And who was it that bought up all of the Fanny and Freddy garbage?
And who is it that's rolling all of that garbage over into the long end when it comes due?
And remember the "secret buyer" in the EU buying the long end? Gee, I wonder who that was?
The long end IS what the Fed is trying to control! And so far doing a damn good job of it.
Is this mess called the "dollar" going to end in an orderly fashion or a dis-orderly fashion?
Is our wonderful Black president, his girl friend Val, and their lapdog Lew going to give the rich White Boys a going away gift? I am referring to a surprise currency devaluation...ala Zedillo 1994. It wouldn't surprise me a bit. The ultimate payback by a vindictive bitter rejected president. Prtobably not, but something HAS to give.
What is "ridiculous" is the mere fact that we even need a law to keep from overspending.
You MUST be a Wallstreet type Bob.
What we NEED is an end to fractional banking, the fed, unbacked currency and FDIC insurance.
Just maybe that would force people to live within their means.
I happened to be at a jobsite of an under construction multi-story government building yesterday outside of Seattle.
The site foreman said that the company he works for principally builds government funded structures.
He told me that there is no more construction labor out there to hire. They are all at work. He said that everybody is working and getting raises fist over teakettle. He said that the company he works for just keeps bidding on the flood of new government building. And winning inflated awards.
EVEN the site foreman, who is benefiting enormously and wouldn't know a FED from a US Treasury, told me that we are spending ourselves into oblivion.
Two hours later a Money Management firm salesman cold called me and told me that all of these "fools" going to cash or gold couldn't see a booming economy if they tried.
I think WE are screwed!
You must be young. 50 years ago we were the best educated country on the planet. The greatest generation put man on the moon. And then the boomers started having kids. And those kids let the US fall from the best educated country on the plant to the 26th best educated country on the planet today. All the while European and Russian kids were digging themselves out of from under the disaster of WWII scrambling to get ahead. Look at the research Journals from Russia, China, even the middle east. Our brain boys are having their ars's handed to them on a platter. Hell, we're so far behind now that we had to implement the H-1B visa program just to keep up. If you are really bullish on America then you would make good salesman material. At this point, that's about all we have left in this country.