Why the Fed may shift to buying Treasurys next year
“‘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?