Last year the Fed purchased 75% of the Treasuries printed by Timmy Geitner.
75%!
So, we print money and buy Treasuries.
We’re buying from ourselves. There’s no way this can work.
No way.
-Rex
It will “work” for a while.
There will be something that looks like a recovery - the stock market will go up, and maybe even the economy will look like it’s improving... for a while, maybe 2 yrs.
QE4ever has given preppers a couple more years to get ready,
but the crash is going to be worse than ever.
we’re not buying from ourselves.
our children are buying them.
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just like that school system that borrowed the 1 billion,
with no payments for 20 years.
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entitlements are sacred, because seniors vote.
but stealing from children?
easier than taking candy from a baby...
One day a US oil company will present dollars to purchase oil from Saudi Arabia, Russia, Indonesia, Nigeria, or Venezuela. The seller will refuse to take dollars and will demand payment in gold, Chinese currency, Russian currency, Canadian dollars, or the Euro if it still exists. When that becomes known, the value of the dollar will plunge, interest rates will skyrocket, people will run to the bank to withdraw their deposits, and hyperinflation will ensue, destroying the US economy.
Expect if Romney wins, the tipping point crisis event will happen early in his first year and the collapse will be blamed entirely on him and the “conservative” Republicans. If Obama wins, the crisis will be delayed until the second half of his last term so a national emergency can be declared and elections suspended for the duration of the crisis. A new Constitution will be written and adopted by the states to enshrine permanent dictatorship.
This thought occurred to me several months ago. With Ben’s ZIRP policy, how is this in reality any different than the Congress creating it own money?