WSJ: Fed Buying 61 Percent of US Debt

WSJ: Fed Buying 61 Percent of US Debt

www.moneynews.com

The Federal Reserve is propping up the entire U.S. economy by buying 61 percent of the government debt issued by the Treasury Department

"This not only creates the false appearance of limitless demand for U.S. debt but also blunts any sense of urgency to reduce supersized budget deficits."

foreign investors like Japan and China that once scooped up U.S. debt are shunning it. In 2009, such foreign purchases of U.S. debt amounted to 6 percent of GDP and has since falled by over eighty percen

(visit the link for the full news article)

This is unbelieavable
Imagine a bunch of ants and a balloon that will inevitably pop in front of them blowing some of the away.

Smart thing would let the balloon pop, but colonial ant politicans put bandages on the balloon so that it keeps getting pumped with more and more air
And because of this when the balloon finally pops a tremendously larger number of ants will fly away instead of much less of them if they would just let it pop a long time ago.

Unfortunately only one guy is fighting this


www.moneynews.com
(visit the link for the full news article)

Look how much effort "that one guy" has been putting out in Washington this year and last while this GOP race is going on, incredible. I have no idea how ANYONE wouldn't vote for "that guy".

reply to post by ModernAcademia


More the one guy; Ron Paul has been fighting this for 30 years!

Edit: oops hadn't watched the video when I posted...

Bottom line is it is only matter of time it is a mathematical certainty. This kind of debasement of the currency blows the bubble up exponentially faster. I think they are doing this to buy time before the crash to get things like all the pieces to the police state in place because when this baby goes THERE WILL BE CIVIL UNREST count on it!

Does this mean that there is less "demand" for U.S. Treasury bonds and notes on open markets ?

If so, an interest rate hike may be in the works.

But that creates a catch-22 I think.

BTW, where does "The Federal Reserve" get the money ?

You all might be surprised at who owns the US debt. I know China --- wrong.

static.seekingalpha.com...

Originally posted by xuenchen
Does this mean that there is less "demand" for U.S. Treasury bonds and notes on open markets ?

If so, an interest rate hike may be in the works.

But that creates a catch-22 I think.

BTW, where does "The Federal Reserve" get the money ?

They create it from thin air mostly via bonds loans and printing...

Sadly, this is not news. Most everyone who makes even a cursory effort at reviewing the effect of a privatized monopoly on monetary policy can see, and has seen in history, the entirely inevitable - and likely planned - outcome.

Generally speaking, our "politicians" (which is to say the elite celebrities we are "sold" as leaders) do not want to admit they understand this. Why? Because they are actually those to whom the wealth "trickles down."

Until such time as we eliminate the need for a "middleman" in the monetary system; we (most any nation with a central banking racket in place) will be the host to a parasitic doctrine of banking that does not have any real incentive to 'serve' the nation. They will only serve themselves... as they have done, as they do now, and as they plan to continue to do until the nation is devoid of wealth, and all that remains are debt serfs to be 'employed' as obedient and heavily burdened workers.

We were warned. We were told what was happening as it was happening. But the political animal in all of us prefers to dine on the vainglorious 'sport' of celebrity competition... because we have been conditioned that way for over a century.

Watch your politicians and ask yourself if you really believe they would even attempt to change anything other than the cosmetics of how wealth migrates away from the people and towards the collective entities of which the politicians are part.

Oh Lordy. The fed is swallowing its own poison in order to create the illusion that everything is A-OK.

No problem. Binky will come riding in on his white steed delivering QE3 to save them from themselves. The only ones that will suffer are the American people and the future beneficiaries of a failed empire.

en.wikipedia.org...

Quantitative easing is a process where a Central Bank creates money electronically. It uses this new money to purchase assets and bonds (mostly government bonds) from commercial banks and financial institutions. For more see: Quantitative easing explained

Quantitative Easing has helped many holders of government bonds who have benefited from selling bonds to the Central bank. In particular commercial banks have seen a rise in their bank reserves. To a large extent commercial banks have not lent out their new bank reserves. Therefore the effect of quantitative easing on the wider economy has been limited.

The main beneficiaries of Quantitative easing have been banks and financial bodies who seen a rise in their liquidity and rise in the price of bonds. Some argue that quantitative easing would have been better if the Central bank had used the created money to prop up the housing market, at least in the US where house prices have fallen considerably. This would have stabilised prices and helped reduce levels of negative equity. This may have had a broader impact on the economy as more householders would have benefited from stabilised house prices. Banks may also have been more willing to lend if the housing market was better supported. By purchasing government bonds, the main beneficiaries of quantitative easing have been commercial banks.

www.economicshelp.org...

reply to post by ModernAcademia

This song by Jim Morrison and The Doors, Immediately sprang to mind. This is the beginning of "The End" my friend.

This is the end
Beautiful friend
This is the end
My only friend, the end

Of our elaborate plans, the end
Of everything that stands, the end
No safety or surprise, the end
I'll never look into your eyes...again

Can you picture what will be
So limitless and free
Desperately in need...of some...stranger's hand
In a...desperate land

Lost in a Roman...wilderness of pain
And all the children are insane
All the children are insane
Waiting for the summer rain, yeah

There's danger on the edge of town
Ride the King's highway, baby
Weird scenes inside the gold mine
Ride the highway west, baby

Ride the snake, ride the snake
To the lake, the ancient lake, baby
The snake is long, seven miles
Ride the snake...he's old, and his skin is cold

The west is the best
The west is the best
Get here, and we'll do the rest

The blue bus is callin' us
The blue bus is callin' us
Driver, where you taken' us

The killer awoke before dawn, he put his boots on
He took a face from the ancient gallery
And he walked on down the hall
He went into the room where his sister lived, and...then he
Paid a visit to his brother, and then he
He walked on down the hall, and
And he came to a door...and he looked inside
Father, yes son, I want to kill you
Mother...I want to...# you

C'mon baby, take a chance with us
C'mon baby, take a chance with us
C'mon baby, take a chance with us
And meet me at the back of the blue bus
Doin' a blue rock
On a blue bus
Doin' a blue rock
C'mon, yeah

Kill, kill, kill, kill, kill, kill

This is the end
Beautiful friend
This is the end
My only friend, the end

It hurts to set you free
But you'll never follow me
The end of laughter and soft lies
The end of nights we tried to die

This is the end

The purchase of 61% of the US debt by the FED will probably increase inflation by 9 to 14% over a span of 1 to 30 days. On reaching 14% inflation will grow exponentially. Hello United States of Zimbabwe! I did a rough calculation in my head based on the bond costs, the increase in fuel costs cause by the increase in monetary costs.

Cheers - Dave

reply to post by bobs_uruncle

Unfortunately knowing bankers and their greed while this may be the end the question really is, is this the beginning of the end or the end of the beginning. If they have their way I will say it is the latter of the two.

In my Lifetime, I am going to learn Mandarin, Brazilian Portuguese, and Expand upon My Spanish Knowledge. Then I will have options, so I'm not saddled with all of this inherited debt. It's like both a drain, and a noose at the same time the way this Keynesian economy works.

Very sad, The East and it's economic partners in South America are the new pioneers, We western powers are saddled to the Industrial age. We have a post industrial age developing out of sight in other countries.

reply to post by ModernAcademia


This is nothing new... While people like to constantly parrot the "China holds the most US debt" it simply is not the case. The US government is the largest holder of US debt.

Originally posted by Maxmars
We were warned. We were told what was happening as it was happening. But the political animal in all of us prefers to dine on the vainglorious 'sport' of celebrity competition... because we have been conditioned that way for over a century.

very well said
would give u an applause if I could

I was watching a music artist speak the other day and he was saying how "What if there was no NBA finals, or super bowl, or artists talking about them owning BMWs, lamborghinis, gold chains and women(depending on music genre of course), they might actually care about where their tax dollars go but instead they live vicariously through these superstars"

I was like Oh Yeah!

"just 50 billion dollars.... or so"

No big whoop

debt? what debt?
lets talk about zimmerman.

The people responsible for this should hang. After the crash happens the entire country will be looking for them.

Originally posted by Maxmars
Sadly, this is not news. Most everyone who makes even a cursory effort at reviewing the effect of a privatized monopoly on monetary policy can see, and has seen in history, the entirely inevitable - and likely planned - outcome.

Generally speaking, our "politicians" (which is to say the elite celebrities we are "sold" as leaders) do not want to admit they understand this. Why? Because they are actually those to whom the wealth "trickles down."

Until such time as we eliminate the need for a "middleman" in the monetary system; we (most any nation with a central banking racket in place) will be the host to a parasitic doctrine of banking that does not have any real incentive to 'serve' the nation. They will only serve themselves... as they have done, as they do now, and as they plan to continue to do until the nation is devoid of wealth, and all that remains are debt serfs to be 'employed' as obedient and heavily burdened workers.

We were warned. We were told what was happening as it was happening. But the political animal in all of us prefers to dine on the vainglorious 'sport' of celebrity competition... because we have been conditioned that way for over a century.

Watch your politicians and ask yourself if you really believe they would even attempt to change anything other than the cosmetics of how wealth migrates away from the people and towards the collective entities of which the politicians are part.

Well said Maxmars! Always enjoy reading your posts, would like to see them more often... Change is a comin and you all aint gonna like it...

So next they will say the size of the debt is nothing to worry about since it is simply 'money we owe to ourselves'. I just paid myself my share of that debt and am now totally out of debt!!! Makes me feel so much better.

Originally posted by Fitch303
The people responsible for this should hang. After the crash happens the entire country will be looking for them.

You do understand that the people to blame are the ones posting in this thread... Are the ones who failed to vote / take an interest in government at all levels, etc etc etc.

The American people allowed it to happen... We watched it happen.... We knew it was happening... and yet we didn't feel the need to do anything to correct it. Apparently its more important for political parties to slam each other instead of doing their jobs.

We watched and failed to do our job.