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Re: Hyperinflation, any day now?
Joseph Stanko
Doesn't the Fed have other tools besides interest rates to affect the money supply? For instance, they can sell off the securities they bought in the various quantitative easing programs, or they could increase the fractional reserve requirements for member banks. · 4 hours ago
Who is going to buy the securities the Fed plans to sell? Right now the Fed is the biggest buyer of Treasuries because nobody else wants to buy them at the currently low interest rates. The only way for the Fed to find customers will be to allow interest rates to rise dramatically, which will explode our debt and crash the economy. So it's got to keep printing money and buying treasuries until it can't anymore.