Fannie Mae-No Politics (FNMA)

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Trump's Right: Paying Back the National Debt With 'Discounts' Is Already Official Policy

Well, now. These “very low rates” could not have anything to do with the fact that the Fed has vacuumed-up $3.5 trillion of Treasury debt and its close substitute in GSE securities since September 2008. Apparently, the law of supply and demand has been suspended until further notice — except for the fact that when Bernanke even hinted that the Fed might sell-down some of its grossly bloated balance sheet in April 2013 treasury yields erupted higher in the infamous taper tantrum.

The fact is, ultra-low rates on Uncle Sam’s mountainous debt have everything to do with central bank manipulation of interest rates; and “confidence” in Washington’s fiscal rectitude is but an empty platitude.

There has been a central bank Big Fat Thumb on the scales for nearly two decades, and it now includes the $1.7 trillion of treasury debt owned by the People’s Bank of China (including its off-shore accounts), the $1.2 trillion owned by the BOJ and the nearly $7 trillion owned by central banks and their affiliates as a whole.

http://www.newsmax.com/Finance/DavidStockman/Donald-Trump-National-Debt-Economy-Default/2016/05/10/id/728125/