2013-08-05 — buygoldco.com
... the spike in bond yields since the first quarter of this year has caused a mark-to-market loss of $192 billion on the Fed's holding assets, equivalent to approximately all of the unrealized gains that the Fed had accumulated since it began to implement quantitative easing in late 2008. Although in keeping with their own accounting principles the Fed does not record mark-to-market losses, a continued increase in bond yields would incur actual losses should the central bank decide to sell assets
This could be the first shot in an inflation cycle, the likes of which, America has never experienced before. I think that the bond market's reaction to the Federal Reserves "quantitative easing" policies will force the Fed to continue with their bond purchases. They are truly damned if they do and damned if they don't.
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