Wednesday, November 29, 2017

FED Balance Sheet

The FED Balance Sheet is shown above as of yesterday. Note that not much has changed.
Note the difference. Here we have removed the Mortgage Securities. Mostly Treasuries. Soon they must begin to unload this junk and at a much higher interest rate.

Based on this, the yield curve, the Trump Tax Plan, we expect significant inflation over the next three years. That will be one way to reduce the debt. I believe they did that in Germany in the 1920!