Fed To Dump Its Balance Sheet Onto Unsuspecting Public - My Blog
“Since the 2008 meltdown, the Fed purchased many financial instruments including mortgage-backed securities to arrive at the current $4 trillion balance sheet. It seems to us that the cornerstone of an exit strategy would be to securitize the mortgage-backed securities, and sell those back into the retirement and endowment funds.
A recent estimate of the total retirement assets just in the U.S. tallied close to $17 trillion. Packaging up those securities and distributing back into the system would go a long way toward a major reduction in the Fed’s balance sheet and make room for the continuing monetization of the budgets deficits which are sure to accelerate as the onslaught of unfunded liabilities hits the public and private sectors.
Rising interest rates would impact the value of those securities, but the Fed could easily make it so that buyers could value them at par for reporting purposes. Given the mortgage rates are only likely to continue higher, the likelihood of significant refinancing affecting the pools of mortgages is very low.
KWN readers should not be surprised if the idea outlined above will also be part of the plan going forward. This would offload tremendous liabilities off of the Fed’s balance sheet and open up their ability to print even more money. All of this is extremely positive for hard assets.”
© 2013 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. However, linking directly to the blog page is permitted and encouraged.
The audio interviews with Rob Arnott, Egon von Greyerz, Gerald Celente, James Turk, John Embry, Dr. Philippa Malmgren, Bill Fleckenstein, Eric Sprott, Rick Rule, Jim Grant and Art Cashin are available now. Also, be sure to hear the other recent KWN interviews which include Marc Faber and Felix Zulauf by CLICKING HERE.
Eric King
Comment
-
Comment by Nobody Will Observe on June 21, 2013 at 12:03am
-
News for Stock market down 500 points in two days
New YorkerWorst day of the year for Dow , S&P 500Fortune (blog) - 7 hours ago... fears the central bank may be preparing to wind down its stimulus policies this year. The Dow Jones industrial average tumbled 353 points, or 2.3%. That marked the biggest one-day point drop since November 2011. Including Wednesday's losses, the Dow has erased more than 550 points in two days.
-
Comment by truth on June 20, 2013 at 11:43pm
-
Max Keiser
- To Hell with Scalia, the Supreme Court and American Express. Bitcoi...In Major Blow To Consumers, Supreme Court Protects Mega-Corporations From Liability
- 4 hours ago, 21 Jun 13, 12:05am - - If you’re ever in any trouble with police (no, we don’t condone bre...The Supreme Court Decided Your Silence Can Be Used Against You
- 10 hours ago, 20 Jun 13, 5:52pm - - Two ways to actually cure the financial crisisMany bright minds have been working away on how to fix the financial crisis. The talking heads have offered us lots of hot air, sound bites but few real answers. Lots of the loudest voices with their genius fixes come…Read more ›
- 11 hours ago, 20 Jun 13, 4:46pm - - Don’t miss @maxkeiser’s film & conversation tonight on This Wee...Filming for #bbctw — @maxkeiser has the banksters in his sight as he takes on The City – more on BBC1 11.35pm pic.twitter.com/AzqYNi7YQU — BBC This Week (@bbcthisweek) June 20, 2013
- 12 hours ago, 20 Jun 13, 4:08pm - - Silver Makes Antibiotics Thousands of Times More EffectiveStacy Summary: Only physical will work, however. Paper and SLV won’t do. Silver Makes Antibiotics Thousands of Times More Effective Like werewolves and vampires, bacteria have a weakness: silver. The precious metal has been used to fight infection…
- 12 hours ago, 20 Jun 13, 4:04pm -
- WE THE SHEEPLE
- 12 hours ago, 20 Jun 13, 4:00pm -
- To Hell with Scalia, the Supreme Court and American Express. Bitcoi...
-
-
Themselves
Today one of the top economists in the world told King World News that the Federal Reserve is now in complete disarray and investors must brace themselves for more turmoil. Michael Pento, who heads Pento Portfolio Strategies, also said that despite…
- 1 day ago, 19 Jun 13, 7:51pm -- Fed To Dump Its Balance Sheet Onto Unsuspecting Public
On the heels of the Fed decision, today 40-year veteran, Robert Fitzwilson, put together another extraordinary piece. Fitzwilson, who is founder of The Portola Group, discussed what the Fed and central planners are facing and how the Fed will buy t…
- 1 day ago, 19 Jun 13, 5:23pm - - Banks Poised For Gold & Silver Turn As Central Planners Panic
With the Fed decision taking place, and continued volatility in gold and silver, today John Embry complained about kitco’s “gobbledygook” reporting, and he stated that central panners are panicking, which is why Bernanke is leaving the Fed. Em…
- 2 days ago, 19 Jun 13, 4:53am - - Man Who Oversees $150 Billion Warns Of Hyperinflation
Today the man who oversees more than $150 billion warned King World News about the high likelihood of a coming great inflation, or worse yet the possibility of a hyperinflationary collapse. Rob Arnott, who has won an unprecedented six Graham & Dodd…
- 2 days ago, 18 Jun 13, 8:47pm - - Turk - Global Markets & Banking System Face Major Collapse
With the Fed kicking off its two-day meeting, today James Turk warned King World News that investors need to be prepared for global markets and the banking system to “literally collapse.” Turk also spoke about what Western central planners face…
- 2 days ago, 18 Jun 13, 5:32pm - - Richard Russell: The Great Gold Rip-Off, China, Russia & Silver
- Fed To Dump Its Balance Sheet Onto Unsuspecting Public
-
Comment by Central Scrutinizer on June 20, 2013 at 11:20pm
-
I predict Kryptonite will be going up up up!!! :) Bookies predicting NYSE going down down down!!
-
-
optix Sould be going up
-
-
How To Protect Your Retirement Assets From The Coming Crash ...
Articles: The Feds Want Your Retirement Accounts
The Greatest Retirement Crisis In American History - Forbes
Roth 401(k) may be coming to you soon - Andrea Coombes' Ways ...
Retirement Crisis Coming, or Here Now? | Fox Business Video
-
Review & Outlook: Now He's After Your 401(k) - WSJ.com
Obama Proposes Retirement Account Limit In First "Wealth Tax ...
-
-
I really wouldn't know James. (Seriously) Good story and linked back to site. Fair use?
Nor would I sweat it.
Disclaimer: I am not Licensed in any state to give advice. Nor do I always even follow my own advice given. Any and all comments posted here, should be considered the ramblings of a (harmless) Emphasis added ;) Law abiding citizen that loves more laws and government!
-
-
Seriously troy, any tips on making this blog more ethical/compliant welcomed. I usually embed the whole site, yet this page impossibly formatted to do such.
-
-
-
-
Where do you hide the mouse? ;)
-
-
optix Nice work station!
-
-
-
On KW, its hard to figure out where DMCA starts and Jim ends :)
-
-
On sale!
-
-
So much for the Copy Right ;)
"Destroying the New World Order"
THANK YOU FOR SUPPORTING THE SITE!
Latest Activity
- Top News
- Everything
ancient lost worlds ~ DNA
"The area of Ket and Selkup peoples.There have been groups of people that have long…"
FEYNMAN: THE QUEST FOR TANNU TUVA (1988)
"Wow. And as strange coincidence this could be the very place of the great migration ( to America,…"
FEYNMAN: THE QUEST FOR TANNU TUVA (1988)
100th birthday present! Richard Feynman (1918-88), physicist, and his friend Ralph Leighton became fascinated by the remote and mysterious Asian country of T...
"That's right. Many countries head down that road into a terrorising future of Self ID-ers. (…"
Terror on All Hallows Eve Pt. 2 The Aftermath
Elizabeth had just gotten home from Junior High when the doorbell rang. She’d barely put her books…See More
"cheeki kea, I fear that we are headed further down the road of inhumanity institutionalized by the…"
"cheeki kea Thanks. I watched most of the movie but I'd forgotten until a few minutes into it…"
"That's a fine movie menu you've got Doc V. I love the old days theme. Great to view when…"
Three Must See Movies for Halloween
Grab Your Popcorn and Settle In! If you really want to get in the mood for Halloween and you like…See More
© 2025 Created by truth.
Powered by
You need to be a member of 12160 Social Network to add comments!
Join 12160 Social Network