Monday, Dec 28, 2009

Term deposits being prepared to drain liquidity from the US

Federal Reserve: Press Release: Term Deposits

Herein is phase 1 of the exit strategy which is needed to keep rates low. Drain the liquidity using term deposits. There are many more options to take money from the system, not least selling treasuries. Hyperinflation just got shot in the heart.

Posted by fallingbuzzard @ 10:25 PM (1253 views)
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6 Comments

1. devo said...

"Hyperinflation just got shot in the heart."

How can you shoot something that isn't there?

Monday, December 28, 2009 10:30PM Report Comment
 

2. markj69 str05 said...

Lee Harvey Oswald got shot, Some say he wasn't there! Oops, don't want to get started on another theory!!!

Monday, December 28, 2009 11:20PM Report Comment
 

3. devo said...

We love the idea of conspiracies

and religion

and sport

and celebrity

it seems it's just reality we have difficulty with

Monday, December 28, 2009 11:29PM Report Comment
 

4. markj69 str05 said...

Not sure I understand how this works. I thought 'Term deposits' had to be re-paid with interest after ther term expires. So how does this drain liquidity? Surely it just ties money up for a while?

Monday, December 28, 2009 11:55PM Report Comment
 

5. fallingbuzzard said...

it keeps tying it up again and again and again for fairly short periods. Thus its flexible enough to be changed very quickly in line with a desired outcome. its like a fixed term bond but one that offers interest so good that you never take the cash out.

Tuesday, December 29, 2009 12:10AM Report Comment
 

6. mr g said...

FB@5 "its like a fixed term bond but one that offers interest so good that you never take the cash out."

Sounds good to me, can the UK saver have one please?

Tuesday, December 29, 2009 06:39PM Report Comment
 

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