Comments on: The Fed: The Need for a Paradigm Shift http://www.nakedcapitalism.com/2007/05/fed-need-for-paradigm-shift.html Sun, 22 Nov 2009 06:06:33 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: "Cassandra" http://www.nakedcapitalism.com/2007/05/fed-need-for-paradigm-shift.html#comment-64 "Cassandra" Tue, 01 May 2007 16:29:00 +0000 http://www.nakedcapitalism.com/2007/05/the-fed-the-need-for-a-paradigm-shift/#comment-64 Liquidity seemingly without consequence via debt manufacture facilitated by financial innovation and official central bank reserve growth, coincidental to fiscal neglect, is my view of the paradigm shift.<br/><br/>When I cut my teeth, things known as "Bond Markets" and "Currency Markets" policed money creation. But really, if PBoC and BoJ are willing to acculate $2 trillion between them alone, even before GCC and other emerging accumulators and all those dollars, enable what was, in scale, previously unimaginable, by purchasing USD debt, and thus keeping a lid on rates and a soft-floor under USD depreciation, so ultimately they then can be used as collateral to spawn the creation of yet more debt and liquidity withyout consequence in a errrr virtuous (!??) circle. <br/><br/>Yes, when I cut my teeth, time travel, and the transmuting of simple base metal into gold was well-nigh impossible, but today, whoooah, we've seemingly got those little chestnuts licked. <br/><br/>Or do we.....? Liquidity seemingly without consequence via debt manufacture facilitated by financial innovation and official central bank reserve growth, coincidental to fiscal neglect, is my view of the paradigm shift.

When I cut my teeth, things known as “Bond Markets” and “Currency Markets” policed money creation. But really, if PBoC and BoJ are willing to acculate $2 trillion between them alone, even before GCC and other emerging accumulators and all those dollars, enable what was, in scale, previously unimaginable, by purchasing USD debt, and thus keeping a lid on rates and a soft-floor under USD depreciation, so ultimately they then can be used as collateral to spawn the creation of yet more debt and liquidity withyout consequence in a errrr virtuous (!??) circle.

Yes, when I cut my teeth, time travel, and the transmuting of simple base metal into gold was well-nigh impossible, but today, whoooah, we’ve seemingly got those little chestnuts licked.

Or do we…..?

]]> By: Biby Cletus http://www.nakedcapitalism.com/2007/05/fed-need-for-paradigm-shift.html#comment-63 Biby Cletus Tue, 01 May 2007 06:13:00 +0000 http://www.nakedcapitalism.com/2007/05/the-fed-the-need-for-a-paradigm-shift/#comment-63 Nice post, its a really cool blog that you have here, keep up the good work, will be back. <br/><br/>Warm Regards<br/><br/>Biby Cletus - <strong><a HREF="http://keralaarticles.blogspot.com " REL="nofollow">Blog</a></strong> Nice post, its a really cool blog that you have here, keep up the good work, will be back.

Warm Regards

Biby Cletus – Blog

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