Think about the government buying 40 Billion dollars worth of mortgages each month. At first it sounds like a great way to boost our economy. But, where is that money coming from? It will have to be printed. And eventually all of the money printing by global banks either creates inflation and a lot of it, or it is successful in sparking economic growth necessary to begin repaying this enormous debt. In either case, the longer-term outlook for Bonds as an investment doesn’t look so good. If investors leave the Bond market rates will go up. And this will be the opposite of the plan’s goal of keeping rates down. Just a thought.
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