Posted on 11/20/2013 11:56:27 AM PST by CivilWarBrewing
Whatever the timing will be, it will happen when a conservative is in office trying to fix this mess and he/she will be blamed, just as Dubya was blamed for the housing crash with the Community Reinvestment Act at the center of it. Franklin Raines was saying he wanted all the loans at Fanny because houses NEVER go down in value. He got a $90 million golden parachute instead of 20 years in prison and got on Obama’s election economic team.
When these bonds come due, Obama will be just a bad memory and whoever is in office then will get the blame for what’s coming. Bernanke will probably be retired in Paris.
You get it, chuckles.
There are varying estimates for how many paper claims there are on each ounce of gold. Some say as many as 100 individuals per ounce, some say a bit less.
That is why most “smarter than me” say that the apparent “paper price” we watch is worthless, and we should ignore the paper price (which appears to be manipulated in an effort to discourage people from buying physical - not that many of us could afford it).
I do not know when this will end, but I do know that it won’t end well.
At what discount are you willing to sell your treasury notes to me? At a 5% discount, I’ll buy all of them.
How about at the cost to produce gold?
COMEX Halts Gold Trading Twice In One Day After $200 Million Sell Trades
Is Venezuela Selling Gold to Goldman Sachs?
http://www.zerohedge.com/news/2013-11-21/venezuela-selling-gold-goldman-sachs
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What crap assets?
Money is burned when bond principal payments are made to the Fed. Unless the Fed reinvests that money.
The gubmint spends $85 billion on planes, bullets, and food stamps, so they issue some bonds to cover that expenditure. The money is spent and is NOW in circulation. The bonds come due some day,....lets say, 5 years. So what you are saying is the Fed is now holding the paper and doesn't want any money for them? The money is already in circulation for food stamps and bullets. So the Fed throws the paper in the furnace and prints $85 billion more every month and throws the paper in the fire?
If that's really how it works, no wonder the Dems don't give a crap about debt. Why bother the Chinese and Arabs to buy our bonds?
I can see no way that inflation is not already 100% in the mix. It's a done deal. They spend and print and the money is twittered away in to some hole the gubmint has dug in a solar company. Even if the solar company goes broke, the money is in some lawyer's pocket, or in real estate, or equipment maker. The money is already in circulation somewhere. How could the FED just throw the money away? They do have a balance sheet. I know we need to audit them, but to just print money to throw away doesn't meet any kind of realistic standard. You are acting like someone is paying us back the bond money. They are printing zero's on a computer screen cause the Chinese have been saying NO!,...for a couple of years now. The FED is buying the debt and holding the paper. Is the gubmint paying the FED back? We are 1 trillion in arrears per year if that's the case, so the FED gets NO money paid pack. We just owe more and more.
BTW, the stock market is ONLY up because the counterfeit money is flowing. Watch what happens when they even SLOW the money down. Some say Taper is built in already, but look at the economy. The first month the unemployment rate starts back up,...BOOM! The printed money goes to the banks and then to assets. Right now that's stocks, and to a smaller extent, houses. This economy can't stand Obama and his socialism without $trillions in free money. All he has to do is drill for oil, repeal ObamaCare, and give a tax cut and we could grow at 5%+. What are the chances? The money has to be cut off at some point, the economy is still broken, and we are dead men walking.
Okay.
So what you are saying is the Fed is now holding the paper and doesn't want any money for them?
No. What I'm saying is that if the Fed holds these 5 year bonds, and they mature, the Fed has to buy a new batch of bonds for $85 billion, because if they do nothing, the $85 billion disappears once back in the Fed's hands.
If you gave me an IOU in return for a $20 bill, when you exchange the $20 you owe me, for the IOU in the future, your IOU in your own pocket is no longer money.
Is the gubmint paying the FED back?
Yes, when a bond matures, the government pays the owner, whether the Fed, you or a mutual fund.
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