posted on Mar, 18 2009 @ 07:15 PM
Originally posted by opal13
, but where are the feds getting another trillion dollars to spend in the next six months?
They are going to buy Treasuries at the regular 'Auctions'...
((and the Fed will 'pay' in IOUs))
but here's the catch... the Fed is going to buy the longer term
Treasuries....bonds or whatever
until & unless the bottom completely falls out for US Treasuries and the Fed
needs to 'buy up' all the future 1yr/2yr- and up to the new issue 7 yr securities,
--> because the world markes might treat US Treasuries like Small-
Pox victims in the near future.
Keep in mind, that the Fed gets paid when Treasuries are issued and then converted into cash... otherwise the Fed only gets 'paid' the interest rate
of the Treasury...
(which is put into the Fed 'Balance Sheet'
which is no way to perform a financial coup & take over the policy making decisions that the existing branches of government are currently performing
~rather badly~ !
Which is just what the Fed/Treas are currently undertaking... a bloodless coup
[edit on 18-3-2009 by St Udio]