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A comment on Fed to buy junk bonds, lend to states in fresh virus support. Parent comment

Re:Fed to buy junk bonds, lend to states in fresh virus support by aazaa on Thursday April 09, 2020 @12:33PM (#22824260)
The global dollar short squeeze [1], if left to unfold, will drive the dollar to highs that will paralyze the US and world economy. The Fed will combat this problem through aggressive devaluation. This devaluation will take the form of moving privately-held assets onto its balance sheet through purchases.

Taken far enough, this program will leave the Fed without Treasuries to buy. To diversify the flow of assets onto the balance sheet, ever riskier assets will be purchased. Today it's junk bonds. Tomorrow it could be stocks.

[1] https://www.lynalden.com/global-dollar-short-squeeze/

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Re:Fed to buy junk bonds, lend to states in fresh virus support by jmcqk6 on Thursday April 09, 2020 @01:00PM (#22824634)
That is an amazing link, thanks!
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Re:Fed to buy junk bonds, lend to states in fresh virus support by acchow on Thursday April 09, 2020 @05:11PM (#22827248)
The fed has instituted infinite QE and we have a dollar short squeeze? Unlikely.
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Re:Fed to buy junk bonds, lend to states in fresh virus support by dajohnson89 on Friday April 10, 2020 @12:30AM (#22829986)
Surely there's some limiting factor preventing truly infinite QE.
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