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The stupidity of this statement: “Huge supply coming…”

Posted by WARREN MOSLER on July 27th, 2009


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Mike Norman Economics

The stupidity of this comment: “Bond market facing huge supply.”

Week after week after week, you hear these TV commentators or other “know-nothing” economists and analysts talk about the “huge supply” of new Treasuries that is coming and how that is going to cause interest rates to spike up.

One quick glance at the Treasury’s Daily Statement will show you that so far this fiscal year…the Treasury has sold
$7.4 Trillion

of securities and interest rates are
Zero!

We’re talking nine months, here, and nearly $8 trillion worth of sales and rates have done nothing but go down. And by the way…that’s on top of the
$5.6 trillion they sold last year!

And…you guessed it…rates
have come down!!

When will these ninnies wake up???

The money to buy Treasuries comes from government spending itself and the monetary operations of the Fed! The added reserve balances that come about as a result of government spending or the Fed buying securities (to reduce interest rates) are merely swapped for an interest bearing account of the U.S. Government known as a Treasury. And the government pays interest on those Treasuries the same way it pays for everything else…by crediting bank accounts.

Please pass this along!


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4 Responses to “The stupidity of this statement: “Huge supply coming…””

  1. Dave Begotka Says:

    The people you are calling stupid are too big, rich and powerful to be stupid! They have rooms full of Scott Fullwiler’s with many ABC’s after there names figuring out what their next move will be.

    The plan is total control at any cost. Watch and see, Right before our closed eyes!

    Reply

  2. Mike Norman Says:

    If they had even ONE Scott Fullwiler it would change everything, but they don’t.

    Being rich and powerful is easy in this country if you are a member of the plutocracy…the ruling elite. Getting in that club doesn’t require that you know anything: there is no entrance exam, no knowledge or aptitude test. You just have to be in the club.

    Reply

  3. Dave Begotka Says:

    Mr. Norman,

    Wow I sense a moment of clarity in your post, why don’t you address the issues at the core. Maybe you are playing the game they have thrown at you? Make a video about the controllers, or are you still hoping for an invitation?

    Peace

    Reply

  4. Dave Begotka Says:

    http://www.washingtonsblog.com/2009/07/economists-have-acted-like-team-docors.html

    Reply

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