Federal Reserve quits buying US bonds

The Federal Reserve has announced an end to QE2.
they are now the worlds biggest holder of US bonds.
US has been buying its own bonds, with borrowed
money the Federal Reserve created.

This has been keeping Interest rates artificially low.
Interest rates will rise to attract buyers to buy the
bonds the Federal Reserve was buying.

GET OUR OF LONG TERM BONDS AND BOND
FUNDS.

Add to this the GOP effort to shut down the US economy
by refusing to raise the debt level ceiling.
They are refusing to reverse the $700 billion tax cut
the GOP gave Billionaire bank buddies, they call that
raising taxes.

And it a troubling out look for the US economy, interest
rates and inflation.

stand by for trouble.


Gerald
series 3 and 7
.