Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
But he could also do a conversion, as Chris suggests, or direct Jack Lew to begin re-issuance of maturing bonds as super-premium bonds which would sell at a corresponding premium over their redemption price. Or he could direct Lew and Bernanke to cancel out some of the $2trillion of US bonds the government owes to itself. That would just be balance sheet operations between the Treasury and the Fed. And he could do it in stages so as to just keep the wolf from the door and the pressure on the Republicans.

Were he to do a conversion he could reserve a large portion of these consols for retirees through banks with Fed accounts. It would piss off the primary dealers but might convert a lot of seniors into Democrats or independents. Then inform the primary dealers that it was financial sector members such as the Koch brothers that financed Heritage Action and stirred up this storm, that they did so through profits made in the financial sector, and if they don't like this they should see what they can to to convince bad actors to desist from stirring up shit storms.

"It is not necessary to have hope in order to persevere."

by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Sun Oct 13th, 2013 at 02:54:08 PM EST
[ Parent ]

Others have rated this comment as follows:


Top Diaries

Occasional Series