They have to cover FX risk. They need another ten basis points in the ten year to stabilize the dollar. If they withdraw, the dump dollars, and import prices rise, and we go fracking. If the rates rise enough to keep our foreign lenders,then that Fed tax will shoot up. It cannot go higher. That tax really cannot exceed two percent, our nominal price hikes. It is highly deflationary, deflsation automatically counter act the cheaper dollar. It is a trap, there is no monetary trick.
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