Serious question: When will the Federal Reserve reach its limits ?

[steve2470]

I'm constantly amazed how they can release so many billions of dollars into the financial system. Does anyone know, roughly, what their limit is for releasing funds into the system ? Thank you in advance for your time, as usual. :)

[BuyingThyme]

1. I suspect they'll run out of paper before ink.

[davepc]

2. It doesn't have a limit, that's the glory of fiat currency.

Only problem is keeping inflation in check.

The dollar isin't tied to anything.

[abumbyanyothername]

3. As long as the Fed has Treasuries on its balance sheet

there is no practical limit.

But with all the garbage they are accepting as collateral for loans these days, who knows when other central banks will call bullshit.

Of course, even the US taxpayer has limits in an economic downward spiral.

Theoretically, the Fed could keep issuing dollars at will. Practically, the rest of the system must accept them and, in that regard, is complicit.

[POAS]

4. I think we saw signsof the bottom

when markets (oil in particular) began trading in Euros.

As with Germany in the 30s you can only print so much money before it becomes worthless. OF sourse the banks abilities at manipulating money markets are much more sophisticated then in the 30s but still there must be a bottom.

[thoughtcrime1984]

5. The crap dollars that worthless Bush wants to float shall

make our dollar nearly worthless by the time someone with more than 1/10 brain in their f'in head takes office. F U Resident Bush and Vice Criminal Cheney. Report straight to white collar prison....

[iconicgnom]

6. hehe. When the Federal Reserve pumps out too many $ willy nilly to "save the system",

China and other big owners of US Treasury Bills will start selling wholesale, with buyers fleeing faster than you can say "Euro Standard". The system can't survive on BS alone.

The USA smacked head-on into the raw fact that the economics of global military imperialism isn't sustainable. Hey, a person has to give the USA its due. No other country before it has ever smacked into that last barrier.