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Operation Twist Is Here - Fed To Buy $400 Bilion USTs With 6 To 30 Year Maturity, To Roll MBS Maturities Into New MBS

Tyler Durden's picture




 

Complete Fed Statement breakdown:

  • FED SEES `SIGNIFICANT DOWNSIDE RISKS' TO ECONOMIC OUTLOOK
  • FED TO BUY TREASURIES WITH 6-YEAR TO 30-YEAR REMAINING MATURITY
  • FED LEAVES FEDERAL FUNDS RATE TARGET AT ZERO TO 0.25 PERCENT
  • FED SAYS PROGRAM PUTS `DOWNWARD PRESSURE' ON LONG-TERM RATES
  • FED TO SELL TREASURIES WITH 3-YEAR OR LESS REMAINING MATURITY
  • PLOSSER, FISHER, KOCHERLAKOTA DISSENT FROM FOMC DECISION
  • FED REPEATS `EXCEPTIONALLY LOW' RATES THROUGH AT LEAST MID-2013
  • FED TO BUY $400B OF LONG-TERM DEBT, SELL $400B SHORT-TERM DEBT
  • FED EXTENDS AVERAGE MATURITIES OF SECURITIES HOLDINGS
  • FED TO REINVEST MATURING HOUSING ASSETS IN HOUSING DEBT
  • FED SAYS INFLATION `APPEARS TO HAVE MODERATED'
  • FED SEES `CONTINUING WEAKNESS' IN LABOR MARKET
  • FED PURCHASES TO BE DISTRIBUTED ACROSS FIVE SECTORS
  • FED SAYS 32% OF DEBT PURCHASES MATURE FROM 6- TO 8-YEARS
  • FED SAYS 32% OF DEBT PURCHASES MATURE FROM 8- TO 10-YEARS
  • FED SAYS 4% OF DEBT PURCHASES MATURE FROM 10- TO 20-YEARS

In other words: $400 billion in POMOs over the next 8 months or so, with the monthly at about $50 billion. Also MBS repurchases for a token amount. No LSAP as most expected, and no IOER rate cut. Goldman once again about half of what it expected.

And statemenet blackline:

FOMC Comp

 

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Wed, 09/21/2011 - 14:48 | 1693628 Irish66
Irish66's picture

they did nothing

Wed, 09/21/2011 - 14:49 | 1693650 SheepDog-One
SheepDog-One's picture

Paying themselves, thats all. And at the expense of you and me, just a hiway robbery today thats all.

Wed, 09/21/2011 - 14:51 | 1693678 Gold Man-Sacks
Gold Man-Sacks's picture

What do you mean?  They're not going to sell short-term securities?

Wed, 09/21/2011 - 14:57 | 1693748 Cow
Cow's picture

Gold Man - you obviously did not go to an Ivy League college, like Ben.  Besides, don't be a Debbie Downer.

Wed, 09/21/2011 - 15:14 | 1693892 Panafrican Funk...
Panafrican Funktron Robot's picture

You ask a wise and highly relevant question.  This sets up a twin disaster scenario of weak ass short term auctions (Treasury pressure) and yield pancaking for the "edge of collapse" TBTF banks.  How this doesn't end in a late this year/early next year mass bailout, I have no idea.  

Wed, 09/21/2011 - 14:44 | 1693587 GenX Investor
GenX Investor's picture

Riots in Cleveland and Akron...

Wed, 09/21/2011 - 14:52 | 1693687 Gold Man-Sacks
Gold Man-Sacks's picture

What did LeBron do this time?

Wed, 09/21/2011 - 14:44 | 1693589 Chaffinch
Chaffinch's picture

This is gonna be great for whoever gets to take a commission on said Treasuries!

Wed, 09/21/2011 - 15:23 | 1693953 Chaffinch
Chaffinch's picture

Sorry - off-topic - but here's an amusing article from Bloomberg about vaults running out of space.

http://www.bloomberg.com/news/2011-09-21/bullion-vaults-running-out-of-s...

I guess no-one wants to rent all that space in the Comex vaults in case their bullion gets 'lost'!

Wed, 09/21/2011 - 14:45 | 1693591 Westcoastliberal
Westcoastliberal's picture

With a President who believes our nearly 25% unemployment is a "sign of increased productivity" it's no wonder the Bernank is in charge.  What a bunch of clueless ass-clowns!

If you agree with me that collapse is becoming unavoidable, don't despair, prepare! http://www.collapsenet.com/262.html

Wed, 09/21/2011 - 15:45 | 1694090 pazmaker
pazmaker's picture

Dude, really???

 

A $1000.00 membership fee to read your blog?   who do you think you are?   Simon Black?

Wed, 09/21/2011 - 14:44 | 1693592 Shock and Aweful
Shock and Aweful's picture

And silver / gold now dropping like a rock....

Are people really so goddamn stupid as to use this as the que to rush back into equities?

This really only has an effect on a small group of large, insititutional investors...hedge funds, mututal funds, and the JPM's of the world...it really does NOTHING at all for the actual economy.  Right?

And...I want to know.  If the FED has to sell it's short term Tbils to buy the longer term shit....who the fuck is going to buy 400 billion dollars worth of that garbage? 

Wed, 09/21/2011 - 14:47 | 1693618 agent default
agent default's picture

I don't get it either. This guy is out to print more dollars and the dollar rallies and PMs get pummeled? WTF?

Wed, 09/21/2011 - 14:54 | 1693724 cynicalskeptic
cynicalskeptic's picture

The MOPE Team (management of perspective economics) at work.  This is pure manipoulation to reinforce the 'Dollars are good - buy T-Bills' meme

Gold gets slammed every time there are announcements that SHOULD inspire massive buying - all this means is we're getting a government discount (and you know that the Chinese are taking every advantage of these buying opportunities - they must think that the US is run by a bunch of total idiots, more concerned with appearances than reality.... oh wait... they're right)

Wed, 09/21/2011 - 15:05 | 1693838 cynicalskeptic
cynicalskeptic's picture

Not lasting long - minig stocks were down - for a few minutes - but are back almost even.

COMEX is climbing back.

 

I suspect the manipulators are getting low on ammo..... can't throw the same amount of cash or the same amount of cash isn't having the same effect any more.  The old DROP THE MARKET - and cover the shorts after triggering the stops approach isn;t working as well anymore.   I suspect the shorts are getting killed when these slams don't last as expected (bu then when you're using free government money, who cares?)

Wed, 09/21/2011 - 14:48 | 1693629 Duffminster
Duffminster's picture

No, the Asian and Indian Physical markets knew what was coming, the bullion banks would sell the news and the Chinese would buy the gold and silver.  The Pan Asian Exchange opens next month and then the ineffectiveness of the US and UK and Japanese bank interventions will become increasingly apparent as the wealth of the world is sucked up from the Western world to the East.  Gold and silver are holding very well based on massive increases in physical demand from Asia.

Wed, 09/21/2011 - 15:04 | 1693833 Chaffinch
Chaffinch's picture

Dropping more like a power-ball thrown down hard...what happens next?

Wed, 09/21/2011 - 14:45 | 1693595 somethingelse
somethingelse's picture

Same 3 dissenters again this month. 

Wed, 09/21/2011 - 14:45 | 1693596 monopoly
monopoly's picture

Wait for the reversal.

Wed, 09/21/2011 - 14:45 | 1693597 Radron33
Radron33's picture

Looks like they are rearranging the chairs on the Titanic to me.

Wed, 09/21/2011 - 14:56 | 1693746 cynicalskeptic
cynicalskeptic's picture

The smart crews members are at the bar - what's the point in 'make work' whenthe ship is going down no matter what?

Wed, 09/21/2011 - 14:48 | 1693598 CitizenPete
CitizenPete's picture

Gold just shit itself. :(

 

More whiskey (and a sandwich) sell treasuries and BTFD in gold. 

Wed, 09/21/2011 - 14:46 | 1693600 fyrebird
fyrebird's picture

Rosie will be most displeased

Wed, 09/21/2011 - 14:46 | 1693601 z123
z123's picture

why gold selling ??

Wed, 09/21/2011 - 14:49 | 1693637 Spaceman Spiff
Spaceman Spiff's picture

No inflationary outright QE.    Not sure how inflationary it is to sell short term bonds to buy long term bonds. 

Wed, 09/21/2011 - 14:54 | 1693723 Gold Man-Sacks
Gold Man-Sacks's picture

How is the Fed supposed to keep short-term interest rates down for two more years if they're selling short-term treasuries to purchase longer-term ones?

Wed, 09/21/2011 - 14:57 | 1693759 Spaceman Spiff
Spaceman Spiff's picture

They don't unless they have some trick up their sleeve.

Wed, 09/21/2011 - 15:01 | 1693777 Random Variable
Random Variable's picture

Fed sells short term treasuries -> Prices down -> Yield Up. Fed buys long term treasuries -> Prices up -> Yield Down. The end result is a smaller long vs short arbitrage. In other words, there is no way in hell short term interest rates will fall.

Wed, 09/21/2011 - 14:49 | 1693651 Radron33
Radron33's picture

No new stimulus (QE3)

Wed, 09/21/2011 - 14:50 | 1693663 unky
unky's picture

I think its high frequency trading where the robots read every word of Bernankes speech and trade based upon it.

Wed, 09/21/2011 - 19:38 | 1695042 anyways
anyways's picture

fuzzy programmer in C++ would have been a more suitable job for the bernank as well... and a relief to the world.

Wed, 09/21/2011 - 14:51 | 1693672 Temporalist
Temporalist's picture

Because people are dumping everything.  They are NOT selling physical gold it's just paper.  BTFD!

Wed, 09/21/2011 - 14:46 | 1693607 Spaceman Spiff
Spaceman Spiff's picture

How long do the algos stay disapointed?    

3:30?  at least a day?

Wed, 09/21/2011 - 14:46 | 1693608 Outlaw Of The W...
Outlaw Of The Wasteland's picture

Anyone else noticed that morgan stanley is trading at 14 bucks?  Looks like its racing bac to the foggy bottom.

Wed, 09/21/2011 - 14:47 | 1693619 drivenZ
drivenZ's picture

So now all of those people that don't qualify to refinance their mortgage at a lower rate can still NOT qualify to refi

Wed, 09/21/2011 - 14:48 | 1693620 web bot
web bot's picture

Actually... Europe is about to take care of the next 6 months.

Fasten your seat belt. Interbank lending across the pond is in the process of freezing up.

God help us...

Wed, 09/21/2011 - 14:47 | 1693621 Chicago bear
Chicago bear's picture

New normal = do the medium thing. Don't excel or lead, just do the least best idea possible. Let's teach that to young people. Let's set that example. Thanks BB for setting the mediocre example for millions of young people. 

Wed, 09/21/2011 - 14:47 | 1693624 economicfreefall
economicfreefall's picture

One thing's clear though: unless the FOMC brings interest rates up a gazillion basis points and suddenly starts selling its worthless assets and at the same time manages to find buyers of that worthless balance sheet, not much that comes out of Bernanke's mouth today should have a negative impact on the precious metals. At least not if one can look past the immediate action. Nevertheless, central banks tend to do what's bad for currencies and good for gold, don't they?

http://www.economicfreefall.com/2011/09/waiting-for-santa.html

Wed, 09/21/2011 - 14:47 | 1693627 myztix
myztix's picture

Is this QE2.5 (Operation Twist) or is it QE3..?

 

Wed, 09/21/2011 - 14:51 | 1693676 Duffminster
Duffminster's picture

This is one day in the time line of the struggle between a collapsing Western Banking system and the Fed's ability to expand its balance sheet to prevent it.  Today, under political pressure, the Fed delayed expanding its balance sheet by shifting maturity dates and moving its balance sheet to the longer end of the spectrum.

Nothing has changed and eventually either the Fed expands its balance sheet to help US and European Banks or the system collapses entirely in my opinion.

 

Wed, 09/21/2011 - 14:48 | 1693634 tahoebumsmith
tahoebumsmith's picture

Looks like just another round of throw the hot potato as the circle jerk continues...I guess this type of intervention would be expected when it is the only thing you have left. It's just more spackle and paint being applied to the holes to keep covering up the truth.

Wed, 09/21/2011 - 14:58 | 1693768 cynicalskeptic
cynicalskeptic's picture

They're out of spackle and paint... we're down to duct tape and chewing gum 

Wed, 09/21/2011 - 14:48 | 1693635 Mediocritas
Mediocritas's picture

Twist is a non-event.

Where's the real story?

Guess they're going to follow up with another announcement soon enough.

Wed, 09/21/2011 - 15:01 | 1693802 jm
jm's picture

Funny how some big boys announce they are offloading CLOs and structured in advance of the Fed buying MBS.

Wed, 09/21/2011 - 14:49 | 1693636 Let them eat iPads
Let them eat iPads's picture

No wonder they needed 2 whole days.

Spectacular!

Wed, 09/21/2011 - 14:49 | 1693643 Caviar Emptor
Caviar Emptor's picture

As we said, no QE3. No balance sheet expansion. ZH called it right on operation twist. 

WS will take this as a huge disappointment. Not a disaster, though. The C-suite will have a fine, fine Christmas bonus season. 

But for Main Street this means biflationary forces remain intact. 

This is bullish for gold because the systemic risk is still on the table in the global system. There is still the threat of a new banking crisis and sovereign issues are here to stay. And negative real interest rates remain. As well as the threat of further dollar erosion and currency warfare. 

Wed, 09/21/2011 - 14:49 | 1693648 MFL8240
MFL8240's picture

FED TO SELL TREASURIES WITH 3-YEAR OR LESS REMAINING MATURITY

 

 

TO WHO?  Who the fuck is gonna invest in zero yields with the state of the US economy?

Wed, 09/21/2011 - 14:53 | 1693698 SheepDog-One
SheepDog-One's picture

Right, theres a big part missing to this equation, who is going to line up to buy this garbage?

Wed, 09/21/2011 - 14:57 | 1693757 Cosmicserpent
Cosmicserpent's picture

Money Market Funds fleeing from European banks.  Bernake will then keep expanding the swaps.

Wed, 09/21/2011 - 15:01 | 1693801 fyrebird
fyrebird's picture

They'll force the dissenters to buy. Payback is a bitch.

Wed, 09/21/2011 - 16:27 | 1694306 data_monkey
data_monkey's picture

I suspect there are a few entities out there desperate enough to do it. They're stuck with another worthless currency that may not last as long as their UST investment.

Wed, 09/21/2011 - 14:55 | 1693736 Johnny Lawrence
Johnny Lawrence's picture

Who exactly is the Fed selling to?

And does this mean the the Treasury will issue longer maturity debt that the Fed will buy?  In other words, how does this fuck the taxpayer if there is no balance sheet expansion?

Wed, 09/21/2011 - 14:49 | 1693649 walküre
walküre's picture

Did anyone else catch that? S&P turned green for a split second before crashing back.

Some heavy selling in financials going on.

There is no more funny money for the banksters to make killer bonuses.

Wed, 09/21/2011 - 14:50 | 1693653 Cursive
Cursive's picture

It's fucking over. SPX 400 here we come. Bernanke's place in history is set.

Wed, 09/21/2011 - 14:50 | 1693658 cogen11@cox.net
cogen11@cox.net's picture

Fed rearranges deck chairs on Titanic, ship continues to sink.

Wed, 09/21/2011 - 15:06 | 1693847 cynicalskeptic
cynicalskeptic's picture

But the band is playing a new tune.....

Wed, 09/21/2011 - 14:50 | 1693667 BrocilyBeef
BrocilyBeef's picture

*collective yawn*

Wed, 09/21/2011 - 14:51 | 1693668 GiantWang
GiantWang's picture

It's sterilized . . . no LSAP or other expansion of the Fed balance sheet (and corresponding bids in the market), so inflation is not a concern--bad for PMs.

Also, the Fed said that inflation has moderated from earlier in the year.  Again, bad for PMs.

Wed, 09/21/2011 - 14:51 | 1693673 firstdivision
firstdivision's picture

So now the Fed is working against their banker overlords.  Is The Bernake trying to expedite BAC's demise?

Wed, 09/21/2011 - 14:51 | 1693677 dick cheneys ghost
dick cheneys ghost's picture

Dont fret, the Empire is getting new military bases in Australia.................

Wed, 09/21/2011 - 14:52 | 1693689 KingdomKum
KingdomKum's picture

this should prove to the masses what a huge clusterfuck we have been dealt

 

Wed, 09/21/2011 - 14:54 | 1693716 SheepDog-One
SheepDog-One's picture

You know the sad part? If you explained this in simple terms to 99 out of 100 americans theyd just give a blank stare and have no idea what you ust said.

Wed, 09/21/2011 - 14:59 | 1693782 Threeggg
Threeggg's picture

Simple-simple

Buying printed debt with more printed debt. Is there anything else anyone with a 1/2 a brain needs to now. ?

I think not !................................................

Wed, 09/21/2011 - 14:52 | 1693691 Dr. Engali
Dr. Engali's picture

Now that it is here long term yields will go up.

Wed, 09/21/2011 - 14:53 | 1693700 spiral galaxy
spiral galaxy's picture

................meanwhile, over in Europe. .........and if we tune into the happenin's at Moody's we see........?  ...and today's reports on the economy, just like yesterday's and the day before that, etc., etc., ....gloom & doom!!  .......and over at the White House the Leader of the Universe will now exude leadership with a speech on.......global warming!  Etc. Blah.  So net-net.........a BIG F-ING NOTHING!  Useless!

Wed, 09/21/2011 - 14:53 | 1693705 Tic tock
Tic tock's picture

This doesn't make a blind bit of difference to anything going on today. t keeps the 700tr deriviatifes bubble from blowing, maybe.

JPM, the treasury, whoever the apparatchiks were who thought this theory up - they've royally screwed the US

Wed, 09/21/2011 - 14:53 | 1693706 Dirtt
Dirtt's picture

We can bitch about it or refinance. Or hell.  "Greed is good" so let's BITCH & REFI.

Wed, 09/21/2011 - 14:53 | 1693708 Belarus
Belarus's picture

PHEW! Algo's have control of the market again, until they don't, which will be sometime soon.

Wed, 09/21/2011 - 14:54 | 1693714 Caviar Emptor
Caviar Emptor's picture

Gold bullish. 

Wed, 09/21/2011 - 14:56 | 1693741 fdisk
fdisk's picture

Common, I'm gonna sell my screwdriver and buy a hammer

And in 3 month I'm gonna twist sh*t around, how that affect

markets anyway? F*cking rates already ZERO everywhere, they

might as well charge people to keep treasuries notes and bonds.

Wed, 09/21/2011 - 14:56 | 1693749 Threeggg
Threeggg's picture

Have no fear ! The Printing Press will save the day !

LOL

The markets are a screaming scam !

Wed, 09/21/2011 - 14:59 | 1693783 Caviar Emptor
Caviar Emptor's picture

Another take on the Fed: they believe they've established credibility that they are loosey goosey, activists, and ready to open the floodgates if there's a bank failure in Timbuktu (especially Timbuktu, very sensitive ya know). 

But they are starting to get religion on Biflation: monetery stimulus is no longer risk-free and they have to watch their step, keep powder dry and not print whenever the weather changes. 

Which means Goldilocks and "The Great Moderation" are dead! 

Wed, 09/21/2011 - 15:06 | 1693841 fyrebird
fyrebird's picture

They probably figure that the clusterfuck going down in Euroland will be their cover when the foundatioins start to crumble in the US. "Not our fault" will be heard all over the place. Maybe they trot out one more QE before the end, but at this point they are done. Just watching the ship sink now.

Wed, 09/21/2011 - 15:04 | 1693828 Bansters-in-my-...
Bansters-in-my- feces's picture

Just one silly little question to ask and that is....

Where does the "Fed" get this "money" to buy this "debt" ?

OOoops,Just one more silly little question,....

Why does the Federal Govt,(really) have to sell debt to a "Fed" (not really Federal).and pay interest to this so called "Fed"

Now correct me if I am wrong....But something seems Awfully Fishy.....to me.

Wed, 09/21/2011 - 15:06 | 1693844 walküre
walküre's picture

You missed that part where the Fed says they're selling 400 billion of debt to buy other debt.

Who are they selling to? China? That is the REAL question.

Either way, the banks are toast. GS dropping 3% and falling.

It will be a very cold winter on Wall Street and I can't help but smile!

Wed, 09/21/2011 - 15:05 | 1693834 walküre
walküre's picture

You thought the economy was bad now?

No more funny money. Shorting gold and miners might actually be a sensible trade now.

Fed is serving a shit sandwich today. LOL.

Got FAZed?

 

Wed, 09/21/2011 - 15:09 | 1693867 Radron33
Radron33's picture

October Market crash?

Wed, 09/21/2011 - 15:09 | 1693871 kennard
kennard's picture

Even with this small action, there were still three dissenters. I thought the two day meeting was supposed to resolve that. It didn't. That is a sign that QE3 is not politically possible.

That said, Twist will significantly increase the interest rate risk exposure of the Fed.

Also. $400 billion of new non-Fed short-term holders of U.S. debt will increase Treasury's periodic funding requirement, versus long-term Treasuries that are rolled over every five to ten years.

Wed, 09/21/2011 - 15:13 | 1693889 Broomer
Broomer's picture

And it seems that the magical DJI recovery in the last hour of trade is just beginning.

Wed, 09/21/2011 - 15:59 | 1694176 Broomer
Broomer's picture

Or may be not. This isn't the best of my days.

Wed, 09/21/2011 - 15:15 | 1693909 Dasa Slooofoot
Dasa Slooofoot's picture

Maria just squashed a Santelli rant >: (

Wed, 09/21/2011 - 15:17 | 1693917 Belarus
Belarus's picture

Just like ZIRP annoucement: Stocks sell hard (the right reaction), Algo's grease it higher (the rigged respnose). That's why it'll take a few weeks for the market to tank 20%. Bernanke, and I've said this on this site many times, will never ever have stocks totally fall apart on his day.

Which begs the question: does Ben have the algo's ears?

 

Wed, 09/21/2011 - 15:18 | 1693925 monopoly
monopoly's picture

Here comes the reversal. Be careful, might get one more false move and then back to your regular programming. Have not touched my mouse except for us here.

Wed, 09/21/2011 - 15:34 | 1694033 walküre
walküre's picture

No reversal. The illusion of the allmighty FED died today. Everyone must save themselves on their very own.

 

Wed, 09/21/2011 - 15:30 | 1694013 lolmao500
lolmao500's picture

So... BAC is done, JPMorgan is done. Citi is done. GS is done.

Is that it?

 

Set up for another round of bailouts or what?

Wed, 09/21/2011 - 18:18 | 1694807 g
g's picture

i totally agree that gold and silver are money, also that they are going to increase in value as we see further debasement of fiat currency. But as things unravel what good will gold and silver do if they simply take it away as they have done in the past in the US? That is the only thing that would make me hesitant to hold gold. They make our currency worthless and then steal our gold. Hard to see any safe haven here. Ideas?

Wed, 09/21/2011 - 21:56 | 1695401 Solid
Solid's picture

Are you going to give it to them? Oops, it got stolen, lost or both.

Wed, 09/21/2011 - 21:56 | 1695402 Solid
Solid's picture

Are you going to give it to them? Oops, it got stolen, lost or both.

Wed, 09/21/2011 - 21:56 | 1695403 Solid
Solid's picture

Are you going to give it to them? Oops, it got stolen, lost or both.

Wed, 09/21/2011 - 18:46 | 1694899 Taffy Lewis
Taffy Lewis's picture

g, if it gets so bad that the police are going door-to-door looking for gold or silver, then absolutely I would want to be one of those hiding mine instead of not having any because at that point it will be the most useful.

 

 

Wed, 09/21/2011 - 19:08 | 1694969 mt paul
mt paul's picture

sign on wall  local Oxford assay shop...

any transaction greater than 4000.$

is  required to be reported to the IRS.... by law..

buy fractional gold guys ..

 

long silver..

Wed, 09/21/2011 - 21:11 | 1695299 Justaman
Justaman's picture

Yeah, we all get to refinance again and pump the banks and brokers with closing fees so the FRB can rotate its defaulting MBS crap for lower yielding hopefully less crappy notes, yippee! 

And hey, someone has to buy Ts from the primary dealers that were told of this plan a few months ago in their impromptu meeting.  The market certainly won't without a fall back buyer. 

Wed, 09/21/2011 - 21:11 | 1695302 Buck Johnson
Buck Johnson's picture

People are seeing how desperate the western banking system is.

Thu, 09/22/2011 - 05:09 | 1696035 EZYJET PILOT
EZYJET PILOT's picture

It seems like they are putting the economy in limbo mode, bouncing between the inflation and deflation see saw. The QE3 expectation to buy MBS is still there, so I reckon stocks will rally on this over the coming weeks. This is how stupid our economy is, Bernanke doesn't have to do anything but just keep feeding the expectation to banksters and the algos take care of it after that. 

I don't understand why does the Fed even have to sell short term treasuries, it invents money out of thin air, so why sell short term debt to buy longer term debt when it just magically invents the money anyway?

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