Federal Reserve`s Impossible Mission

Remember, the Federal Reserve also has to shrink its balance sheet, its not about tapering. Tapering is the easy part, even though that is impossible. The hard part is when the Federal Reserve goes from being a buyer of Treasuries, to being a seller of Treasuries. How is that even possible? Who would step in front of that train?

Peter Schiff is an American businessman, investment broker and financial commentator. Schiff is the CEO and chief global strategist of Euro Pacific Capital Inc.

If The Federal Reserve Withdraws Itself From The Bond Market, It Will Implode

Why would you want to buy U.S. Treasuries? The yields are too low compared with every other asset. Why would`t you just buy stocks? I mean, the yields are too low relative to where inflation is, relative to the risk. If the Federal Reserve materially withdraws itself from the bond market, the bond market implodes.

Peter Schiff is an American businessman, investment broker and financial commentator. Schiff is the CEO and chief global strategist of Euro Pacific Capital Inc.

Federal Reserve: If They Don`t Buy U.S: Treasuries, Who Will?

If they don`t buy treasury bonds, who will? The biggest buyer of treasury bonds in the world is the Federal Reserve. After that, you have other central foreign banks like China and Japan but there are no real buyers , in fact the hedge funds have been big buyers out of the Caribbean but why would hedge funds buy U.S. Treasuries when the yields are not even 3 percent? I mean nobody pays 2 & 20 to buy Treasuries. The only reason hedge funds are buying treasuries is because they are levered up, they are gambling.

Peter Schiff is an American businessman, investment broker and financial commentator. Schiff is the CEO and chief global strategist of Euro Pacific Capital Inc.