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7
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1answer
142 views

Investments: Feds buying more treasury bonds? How does it affect Bonds (going up or down)?

I have set up a 401(k) and I have bonds. When the Federal Reserve buys more treasuries (today's news) what's the effect on bonds? Should I sell my bonds or buy more?
0
votes
1answer
308 views

Why do Central Banks buy gold for their gold reserves?

I read The People's central Bank of China (i think called PBOC) should have bought 50 to 70 tons fo gold in 2011 (Marcus Grubb, managing director World Gold Council). On the same article it states ...
6
votes
4answers
443 views

Why can't the Fed lower interest rates below zero?

Ben Bernake said today that he can't lower interest rates further because they can't be lowered below zero. IIUC benchmark interest rates are determined by what someone is willing to pay in an ...
5
votes
3answers
75 views

How are mortgage interest rates determined?

I know it's somewhat controlled by what the Fed sets interest rates at. I'm not clear on what exactly this interest rate is. Also I have heard that mortgage interest rates track Treasury Bonds. ...
3
votes
1answer
80 views

Why is seigniorage different for paper notes and coins?

Wikipedia defines Seigniorage for paper notes and metal coins. Why is seigniorage for paper money not just face value - production cost? I can understand using just the interest rate in the age of the ...
3
votes
4answers
1k views

How much control over the Federal Reserve does the U.S. Government have?

Or, in other words: Who does the head of Fed report to? Is the Federal Reserve a private institution? I'm going to be a bit naive here, have just read about how the Fed has been brought to life and ...
5
votes
2answers
317 views

What does the Fed do with the extra money it is printing?

Last month I read some news about the Fed printing money to devalue the U.S. Dollar compared to other currencies. But what do they do with this extra money?
6
votes
2answers
3k views

Why does the Fed buy treasury bonds through Goldman Sachs instead of from the treasury?

These animated creatures don't like it, and think the federal reserve is just giving Goldman Sachs money: http://www.youtube.com/watch?v=PTUY16CkS-k Quora says it is an auction through dealers: ...
4
votes
4answers
1k views

What would happen if the US Federal Reserve stopped printing money?

So much money is digital now, from bank accounts, online stores, credit cards, and so on. How long would the country be able to sustain itself if we didn't introduce new paper currency/coins into the ...
14
votes
3answers
357 views

Is there any way to know how much new money the US is printing?

There is a lot of talk about the Fed printing money. Is there any way to know how much new money is being printed and when?