Jim Rickards on the latest Federal Reserve Rate Decision and Operation Twist 2.0

June 20, 2012 By 5 Comments

Welcome to Capital Account. Let’s twist again…like we did last September. The Federal Reserve announced today that it will be extending operation twist — it’s effort to twit the yield curve and keep long-term interest rates low by selling short-dated securities and buying long-term treasuries. It’s just more free market arm-twisting, and the Fed says it’s willing to do more. Sounds like more threats!

And whales have been popular, but what about “operation humpback whale…” What is this? Well, how ‘about the Fed buy both the long, as well as the short end of the curve, and sell a bunch of the bonds in the middle? We’ll float that idea to our guest Jim Rickards. He believes that the same force behind too-big-to-fail banks that is driving anti-competitive behavior on Wall Street is also responsible for driving monopolistic practices in government.


Check out these similar articles:

  1. QE Never Ended: When Operation Twist Ends, Fed Will Have Completed 40% Of Twist 2
  2. Peter Schiff Discusses Operation Twist
  3. Goldman Expects The Fed to Do the Twist to the Tune of $300-$400 Billion
  4. Fed Keeps Rates at 0-1/4%, Extends Operation TWIST, Stands Ready for QE3
  5. Michigan Sells $3.3 Billion in Variable-Rate Bonds to Pay Back Federal Unemployment Benefits Loan
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Comments

  1. Avatar of Plebian Plebian says:
    June 20, 2012 at 7:03 PM

    The gold may be in Ft Knox and West Pt, but who owns it?  Certainly not the people of the United States.  In all likelihood, all of the gold as been transferred or sold, primarily to private individuals.  Worse yet, the Federal Reserve could claim ownership of all of the gold as collateral for lending so much fiat ‘money’ to the U.S. government.

  2. Avatar of silverbullion silverbullion says:
    June 20, 2012 at 7:17 PM

    Yeah, let’s twist again…

  3. Avatar of PatFields PatFields says:
    June 20, 2012 at 7:32 PM

    Where does Mr. Rickards get a pass to play the ‘Republicans in the pocket of Wall Street’ card, when we’re perfectly well aware that BOTH FACTIONS are in partnership with with the bankers (AND the monopoly industrialsts, lest we forget). ALSO, from one side of his mouth, he says banknotes will collapse, THEN from the OTHER side, he’s saying the Euro will survive! WELL, WHICH IS IT JIMMY BOY?

    You see, THESE are the sorts of propagandistic head games this guy plays, that have me convinced he’s just another fast-talking, slick shill.

  4. Avatar of ILUVPMs ILUVPMs says:
    June 20, 2012 at 8:21 PM

    This guy just talks a lot of shit… period.. he doesn’t know whats going on with the fed as much as you and I do . 

  5. Avatar of UglyDog UglyDog says:
    June 20, 2012 at 9:37 PM

    Always great to get in on Jim Rickard’s insight.  Here’s a guy who plays the game.  Rest of us are mere observers. 

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