“The Federal Reserve is propping up the entire U.S. economy by buying 61 percent of the government debt issued by the Treasury Department, a trend that cannot last, Lawrence Goodman, a former Treasury official and current president of the Center for Financial Stability, writes in a Wall Street Journal opinion article published Wednesday.
h/t Jason
If you have massive debt and no one wants to buy it, you simply print more money and buy it from yourself. What can possibly go wrong ?
Damn. Why didn’t I think of this scam years ago? I could tell the CRA to go farck themselves! Heck.I could by the damn gubermint!!
And Ron Paul is the crazy one?
He is our only hope.
The Fed has been creating money out of thin air (and charging interest on it)for years. Nothing different here.
Good thing The Fed doesn’t have disclosure requirements like all public companies.
That is the reason that the interest rates in the US have not gone up substantially. If the interest rates did rise the 1.3 trillion dollar deficit would balloon because of the interest payments and the US would become Greece. They therefore must print or die. They will continue to print until inflation becomes recognized as a substantial problem. They are broke. Why would anyone loan them money?
Obamanomics . . . the reality perspective rather than the Teleprompter view.
Please watch:
U.S.-Canada Relations
Apr 2, 2012
Wilson (Woodrow) International Center for Scholars
Canadian Prime Minister Stephen Harper was the featured speaker at the Woodrow Wilson Center for International Scholars. He talked about U.S.-Canadian relations.
http://www.c-spanvideo.org/program/HarperP
Husbands have been buying their wives “new” credit cards whenever the old one fills up with junk, for eons… This works for about as long as it works, about.
This is simply printing money without the messiness of running a physical printing press. Are the directors of the Fed going beyond their mandate? I am not sure if their mandate involves deliberately destroying the currency.
I have wondered what Canada must be doing to keep the value of our dollar down compared to the US. We do everything right and they screw up the works and we’re still at par.
One day a fellow had a flat tire on a bridge. He began changing the tire and put all the lug nuts into the hubcap. However when he went to put the new tire on he kicked the hubcap and lug nuts into the river. He decided his best course of action would be to walk to the next town and get help. As he walked he came to a mental institute and who should be making faces through the fence but Ron Paul. Ron Paul calls out the fellow asking why he is walking. The fellow explains his predicament whereupon Ron Paul asks, “Well why didn’t you take one nut off of the other wheels and put use them to hold the fourth wheel on and drive to the next town?” The fellow has a forehead slapping moment, turns to Ron Paul and says, “I thought you were crazy!” To which Ron Paul says, “Well I may be crazy, but I ain’t exactly stupid”.
Scar,
It is because the US dollar is still the world’s currency, and it would look BAD if the CAD or the AUD were worth “more” that it.
Please ignore the man behind the curtain…
I am not sure if their mandate involves deliberately destroying the currency.
They’ve been doing exactly that for years. It’s the reason why $100 buys what $20 did a few years ago. Even the gov’t hasn’t taxed us that much.
You are right, Fiddle. Since at least the mid-1990s, the US has been following a weak dollar policy in an attempt to export deflation to the rest of the world. It crashed and burned when after the 2008 credit crisis others started doing the same. Currency wars have now been brewing for about two years now. The only thing that’s protected Americans for so long is that mahy key commodities, including oil, are priced in US dollars. Otherwise the butcher’s bill would have been much higher.
Its the same thing the Liberals did in the 1990’s. Anybody out there remember the Canadian dollar at 70 cents US? I do.
Why do you think we have a “balanced” budget now? Inflated the CDN dollar to hell, paid off the Trudeau debt with funny money. Chretien just beat them to it, is all.
We already got reamed the last 20 years, now its the American’s turn. Hope ya gots change fer a daller!
If you think what the Fed has done is “BIG”, go look at what the PBOC has done in less time. Makes Ben look like a piker.
The left wing terrorist pundits on MSNBC and other leftards have even started to figure this out. Gold will go parabolic pretty soon. Obama is running a 2 TRILLION dollar deficit this year. How long before people finally understand that US dollars are worthless pieces of paper.
Quite right, Phantom. Give the little thief credit. He got the dirty job done rather unnoticed by the rest of the world when you could get away with this sort of thing without too huge a cost to pay.
Indeed, I remember about 1994 or so when for a few months the dollar was down to about 67-68 cents. Effectively, the entire country took a pay cut for a decade.
James, when it happens, it happens quickly. Germany’s currency fell apart in 1921 within several weeks, same thing with France in the late 1950s and Zimbabwe just some years ago. And the big effect is that the country has no credit rating. Can’t borrow hard currency from anyone, and that’s when the real depression sets in. One of the first signs of the apocalypse will be when China breaks its peg to the US dollar. After unloading as much US treasuries as it can.
The reckoning is coming – all this phoney fiat debt, derivatives and other debt instruments which were taded as value, are going to blow the system out of the water unless some form of a weite down/write off is commenced.
All I’m getting from this is stock up on gold, ammo, guns, food and water…(and don’t be afraid to use the first three to get the last two.)