The FedRes Is Back in the US Bonds, Treasury-Buying Business! Has QE4 Already Started?

• Why is the FedRes buying US treasuries? Ie. lack of demand or overwhelming supply. Negative interest rates imply excess liquidity. In a healthy economy, banks will offer interest to savers so that they can lend the money to businesses ie demand for money causes interest rates to be positive. When interest rates becomes negative, banks are in effect saying: “I have more money than I need ie I don’t need your money. I will charge you for deposits.”. Ie. excess liquidity, too much money flowing in the financial system.
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• So, why is it that there is insufficient US bond demand when there is excess liquidity, so much so that the FedRes has to step in to monetize treasuries? It implies that people with the money no longer want US bonds ie. no longer consider it as safe haven. So where are they putting their cash into? Gold and silver have been rallying sharply.
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• Think carefully what this means. Negative interest rates will destroy the fiat currency system as people flee to hard asset like gold/silver. If fiat money can no longer function as a store of value since we are being charge interest for holding it, the logical move is to flee to an asset class that is a store of value ie. Gold/Silver. The final conclusion based on simple logic, is that we are being setup for a Global Currency Collapse and a Return to the Gold Standard.
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• The FedRes Is Back in the US Bonds, Treasury-Buying Business!
  by https://schiffgold.com/
  Has QE4 already started?
  For the first time since October 2014, the Federal Reserve has bought a significant number of US Treasurys. Over the past two weeks, the Fed purchased $14 billion in US bonds.
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  Up until 2 weeks ago, it had been 250 weeks since the central bank bought a meaningful number of US Treasurys. After ending QE3 in 2014, the Fed held its Treasury holdings stable at around $2.6 trillion until it began its balance sheet reduction efforts in late 2017. The Fed sold off Treasurys through 2018 and most of 2019, tapering off over the summer as it prepared to end QT this fall.
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  Now it appears, the Fed has started a new period of Treasury purchases, but as the Econimica blog says, who knows for how long.
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  In July, the Federal Reserve cut interest rates for the first time in more than a decade. At the time Peter Schiff said it was the first cut on the road to zero and another round of QE was in the cards.
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  It shouldn’t come as a complete surprise that the Fed has pivoted back to buying Treasurys so quickly. There were hints that the central bank was planning to begin monetizing the massive US debt again last spring. In April, the US Treasury Department lowered its borrowing estimate for Q3 2019 in anticipation of the Fed increasing Treasury holdings as the central bank ended its balance sheet reduction program. According to a statement issued by the Treasury Department at the time, the lower estimate was due to changes in “fiscal activity.”
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