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Buy your cemetary plot...line up.a clergyman and a choir to sing your requiem.

The FED is taking EXCESS CASH OUT OF THE SYSTEM and putting it into a daily limbo..the bucket of cash is overflowing..and they have to do something with it. It is more than the sytem can adsorb. Yet they are continuing QEing 120B a month...to buy mortgage back securities and US TREASURIES>

So in essence they are ADDING MORE CASH eg pouring more cash into an already over flowing bucket. They can not stop, if they do there may not be enough buyers of Treasuries to buy all of them. The FED is the Buyer of last resort.

Then interest rates will rise uncontrollably to entice Buyers to buy a now risky bond. Debt service becomes unsustainable. The FED has to buy the undersold Treasury offerings in order to keep interest rates low and under control. I mention quite a while ago that the US Treasury market is saturated and they have run out of parties with cash to lend to the USA. So the FED is left to print and buy US debt bonds..in essence burning the candle at both ends.

If the banks are left to their own devices..they will have to deploy the excess cash into short term treasuries which would drive them into the negative interest territory. There is no incentive to put money into a bank or into a money market if you have to pay for the privileged. The postulation is that money would then flow out of the banks and into the mattresses..where to keep the banks solvent cash is banned and a digital currency is introduced that forces you to use a bank..and it's negative interest rates.

It really is an obverse nether world...some call it he11.