Posted on 09/15/2009 9:13:01 AM PDT by Kartographer
The Federal Reserve Bank of New York bought $2.049 billion in Treasurys on Tuesday, in the first of two buybacks this week. Dealers submitted $7.004 billion in debt maturing between 2021 and 2026 to the Fed.
(Excerpt) Read more at marketwatch.com ...
Exactly. The modern day printing press.
It will not be long now before the crash.
They may be on to something!
This is how inflation enters the picture, yes?
Mark
Thanks for posting lol not even china wants them
Can’t be, can it? I mean Bernanke has just said the recession is over, and obama says ‘it’s all working’.......LOL.
Wonder who’s, like through the so called “healthcare” bill, will be channeled to pay for this? Like every “citizen.”?
Why are these men laughing?
I’m not sure I 100% understand this but I’m guessing this is about as close as you get to literally printing money without actually doing so.
I’m sure it will be discussed better by those who know much more here.
http://goldismoney.info/forums/
This is probably also why gold has hit $1000 recently.
Visa, meet Mastercard.
guess the ChiComs still have their knickers in a twist over those tires, eh?
Would someone who really knows what they are writing about explain exactly what happens when the Fed buys U.S. debt. I realize the debt is bought from a third party in this case, but is the overall net effect that the Fed simply credits the Government’s account at the Fed with the amount of the debt? Hasn’t the government, in effect, ereated money out of thin air when it does this?
Also, please explain the idea that the Fed can avoid inflation by simply sopping up the excess money as the economy turns around. How easy is that, in reality? Does it involve anything more tha selling the debt back to third parties? If not, isn’t that likely to drive interest rates sky high?
It was all explained long ago in a poem by a great comedian who was known as “Nipsy” Russell. I don’t remember the poem but the last line involved taking a loan on something and then paying off the loan with your BankAmericard. Basically what the government is doing today. I miss Nipsy.
If you’re an individual, this is called “check kiting”. It’s illegal. ...if you’re not the government.
That's it - and it scare the hell out of me.
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