The Fed is nothing but a trash talking tapered turd.
Just the mere mention of removing the QE training wheels and the financial markets start immediately teetering into crash mode.
If the Fed does not want to lose its grip of the bond market bicycle, it better start accelerating its QE peddling program fast and furious or it will risk a mountain of Treasuries hitting the market at a rate which puts the U.S. budget back in the spot light due to rising interest payments on the national debt.
Every 1% rise in rates adds about $170 billion in interest payments on the deficit and reduces the value of Ben’s portfolio by 5%.
In 2001 interest on the the national debt was $359 billion. In 2012 it was $359 billion even though the debt had increased from 5.6 trillion to 16.5 trillion. Taper my ass…………….
