Minyan Mailbag: Caribbean Finance
Note: Our goal in Minyanville is to remove intimidation from the financial markets and encourage an interactive dialogue among the Minyanship. We share this next column with that very intent.
Your post yesterday was interesting and gave a lot of food for thought. I'm not huge on conspiracy theories but is it possible that the U.S. is forced in financing its own debt for lack of participation from others? How is this possible? Would we not see an inordinate increase in the velocity of money? The ramifications would seem somewhat hard to comprehend. Would precious metals be a leading indicator (not lately) of something which is out of whack
Maybe you could expand your thoughts in some of your postings.
Enjoy and benefit from your work
conspiracy: to join in a secret agreement to do an unlawful or wrongful act or an act which becomes unlawful as a result of the secret agreement.
Although the Federal Reserve's actions may be harmful, and getting more so, they have made sure that they are not illegal or even "secret". Mr. Bernanke has stated plainly that the Fed has a printing press and will do whatever it takes to stay off deflation, including buying stocks and buying our own debt. For those who have ears, let them hear.
When the Federal Reserve monetizes, as I believe they are, they simply create money out of thin air and buy bonds. Normally they have to report this, "creation of money." But this Caribbean thing is stranger than fiction. Clearly Japan has recently all but stopped buying our bonds. 60% of all buying, which has picked up the total amount of slack, is now being done by this strange buying out of the Caribbean.
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