THE FED IS F*CKED!
JULY 8, 2013
The Fed is F*CKED.
Almost no media that I’m aware of, mainstream or otherwise, has reported what I’m about to tell you. So, listen up. I’m going to give you spin before it’s spun.
By SD Contributor Eric Dubin
Six months from now, or sooner, we will start hearing about the latest bullsh*t exit strategy brought to us by the Federal Reserve. It will involve the brilliant idea of securitizing the “assets” on the Fed’s balance sheet and selling them off into the public markets. It will require packages sold at a discount because much of the stuff that’s marked-to-make-believe now on the Fed’s balance sheet (other than the Treasuries) will be offered to real investors and not governments with printing presses. Real investors, for the most part, demand satisfactory risk/reward — thus the discounted offerings.
But guess what? With that extra crap flowing to the public market, it will crowd-out existing ongoing debt offerings which are already having a hard time being sold at current interest rates. Thus, instead of the Fed claiming victory by not having the velocity of money go bonkers since sequestered “money” on their balance sheet is “sterilized” by “honest” purchases by new investors locking up the funds, in reality, interest rates will shoot higher because: