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.