US Yield Curve Control ahead?
The Federal Reserve conveniently provided itself with the legitimation for future yield curve control:
The Federal Reserve conveniently provided itself with the legitimation for future yield curve control:
„The period 1942-47 provides some evidence that the Federal Reserve can lower long-term rates by committing to keeping short-term rates low. The brief period from 1947 to 1948 may also...
provide additional evidence that long rates can be reduced by direct interventions in the market for long-term Treasuries.“ Source: federalreserve.gov/monetarypolicy…
However, there is a significant difference: in 1942, 84% of all Federal Reserve liabilities were backed by gold. The U.S. then owned just under a quarter of the world's gold....as our friend @Myrmikan concluded:
„If inflation breaks out and market rate for Treasuries jumps above the Fed’s targets, it will have to purchase the entire stock to control rates. There is no doubt the Fed can do this, but it would herald the final end of the dollar.“
#gotgold?
#gotgold?
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