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> You could also say "well if we can't force-prune then maybe we can figure how to best allow for organic liquidity." And if so, that would mean expanding the maturities on some securities in order to make more room for future savings without getting taxed too much in present day

> But nobody wants higher rates (for all those reasons), therefore this is ultimately an untenable strategy. Which means... uh oh... I think we might be in trouble here guys! We've run outta ideas! *sad trombone*

> he Fed is out of ideas. So they've resorted to force-pruning, which means we're gonna have a world of hurt on our hands when we get there because the economy has been disincentivized from saving.

> And now you know why it's so important to have a healthy savings rate - and also why people who are planning for retirement should be cycling their money into investments that aren't too sensitive to interest rates, like real estate and gold.

> Gold is a better store of value than money in dollars, because it's real. And so is the cash flow from rental properties. The Fed has to prune them but they won't be able to force-liquidate them!

> And now maybe you also see why "asset bubbles" are the best thing happening to us. Asset prices are a very real signal that we're doing something wrong with our economy and if they deflate, it's really cause for concern!

> Maybe you also understand how bonds can be bad for business during times of recession - because if rates fall when you're trying to run a company, the Fed is implicitly telling you not to save and instead go spend your money.

> The Fed is tampering with market signals on purpose in order to force-mature debt by running around swinging axes at all the fat parts of the curve. (We could have organically liquidated them but... uh.. yeah... ) Which means we get stuck in recessions.