I think the Fed bought bonds at one time in the 1930’s as well. Dont forget that FDR also confiscated gold and then raised the price from 21 to 35. You’d think those measures would be very inflationary. But they were’nt.
The bursting credit bubble was gigantic and derivatives market is in the 100’s of $T. It looks like money distruction far outwieghs money creation. We’ll see. But there’s a good chance that the safehaven in the future may more likely be in gold than US Treasuries. The next big dump in the markets will tell our future.
Just my 2 cents.
