Why the Fed may shift to buying Treasurys next year

MarketWatch/Greg Robb/2-14-2019

“‘Great news’ as it should ease fears over who is going to finance the budget deficits,’ says Stephen Gallagher of Societe Generale. . .’Switching from shrinking its Treasury holdings by roughly $200 billion per year to being a net buyer of nearly the same amount could significantly support the Treasury financing trillion-dollar deficits and a weakening economy,’ he said.”

USAGOLD note: Wondering how the U.S. might finance those $1 trillion plus deficits over the next decade?  Here’s one suggestion:  Just have the Fed print up a mountain of money and buy Treasuries.  What could be simpler?

Repost 2-18-2019

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