fed taper in december, page-39

" But even if we do that, the subsequent steps will be dependent on continued progress in the economy. So we are tied to the data"



What is almost never mentioned is what the fed. QE or lack of QE is really tied to.


Other people buying their paper.

If some other silly bugger buys their paper - then no worries - taper all you like.

But, if no stupid idiot comes out of the woodwork to buy the paper every month - then, guess what?

Now, we seem to have run out of silly buggers in the world - well, at least we have run out of silly bugger who are THAT stupid - at least for a while.

And that is where we are at -- unless the US can find a new wallet overseas --------- they just have to dilute.

End of story.

Maybe a miracle will happen. Maybe someone will open the gates of the looney bin and some loonies with money will embrace old Uncle Sams new paper ---------

funnier things have happened.

More likely Russia might buy back Alaska though :) Cut a deal with the US and hold hands against China or something :)

pinto