...the government will be forced to raise interest rates...Who is going to force them to raise interest rates? If the Fed can buy 72% of the long bonds, the CTRL+P function will enable them to buy a mere 28% more.No need to worry about anyone forcing the US to raise rates until some time after Japan is forced to do so. ZIRP has stuck in Japan for 20 years and no one has succeded in challenging their central bank. Our central bank is even more powerful than Japan's. If no one can challenge Japan, then fewer still dare challenge the all-powerful Fed.The bond vigilantes are dead and their ashes have been scattered by the most powerful central planners in world history. The Fed saved us from what could have been another Great Depression - and they can do it again and again.The banks don't need help from depositors. Dependency upon savers for funding is a relic of banking history. Asset sales to the all-powerful Fed and interest on reserves is all they will ever need.ZIRP is brilliant. Risk is an antiquated concept. Prices of assets do not waiver when risk is removed from the equation.There is no risk any more because the Fed can negate it by mere click of a mouse.
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