Fed begins monetizing the deficit - buying U.S. Treasuries

The People's Voice ^ | August 11, 2010 | Numerian

[Proud_USA_Republican]

As someone here eloquently put it. They are using bad paper to buy bad paper.

[Marie]

I just saw a reference to this on FOX News a few minutes ago.

I don’t know why I’m surprised. People have been warning us that this will happen for the last couple of years. I guess I just couldn’t believe that these people could be so stupid.

I hope this is a one-time thing.

[mazda77]

Beck warned us they were going to do so how many months ago? But no! He is just an entertainer.

[hosepipe]

The fire begins..

http://www.historyplace.com/worldwar2/riseofhitler/burns.htm

[circlecity]

"I hope this is a one-time thing."

Oh, it certainly will be....until the next time.

[sten]

what could possibly go wrong with this?

[RachelFaith]

Roman Lead Coins and Wooden Nickels!

BUY JUNK SILVER NOW!

You HAVE BEEN warned.

[Southack]

Such excessively low yields on government bonds have only been seen in deflationary economies like Japan has experienced for nearly two decades. This is in essence what the bond market is forecasting for the US economy."

DING! DING! DING! We have aaaaahh winner!

[puppypusher]

The Federal Reserve, in announcing the results of this week’s meeting of the Open Market Committee, surprised the market by revealing it will begin purchasing US Treasury notes and bonds with the principal income it receives from its vast holdings of Fannie Mae and Freddie Mac mortgage securities.

So what they’re doing is buying teasuries with nothing.

[sten]

Weimar Republic

1923-issue 50 million mark banknote. Worth approximately $1 US when printed, this sum would have been worth approximately $12 million, nine years earlier. The note was practically worthless a few weeks later because of continued inflation.

[comebacknewt]

Massive collapse straight ahead.

O-BA-MA!! O-BA-MA!! O-BA-MA!!

[True_Kon]

Dick Durbin - Bankers own US Congress

http://www.commondreams.org/view/2009/04/30-8

[Red Badger]

This is not good news...............

[True_Kon]

Eating their own puke is more like it. When you can’t get foreign buyers of these securities, then you have to do something. You print more paper to buy paper you print yesterday.

[TigersEye]

Fed begins monetizing the deficit - buying U.S. Treasuries

The word 'begins' is a misnomer. The Feds have been doing a lot of that in the last year.

[Red Badger]

We could always borrow money from Zimbabwe..............

[DoughtyOne]

The Federal Reserve, in announcing the results of this week's meeting of the Open Market Committee, surprised the market by revealing it will begin purchasing US Treasury notes and bonds with the principal income it receives from its vast holdings of Fannie Mae and Freddie Mac mortgage securities.

One of these two entities is requesting another $6 billion dollar bailout.  And yet the fed wants us to believe that it can extricate $10 billion per month to buy US Treasuries, notes, and bonds.

Perhaps it can.  Our own federal government sure can't.

[bvw]

It’s worse than that. It’s moving honest wealth, in dollars and equivalent, into the hands of the dishonest.

People who know who stocks work will understand this. Sometimes a self-dealing insider group gets hold of management positions of a public company. These insiders dilute the value of existing shares already sold to the public by issuing new stock which they ‘gift’ themselves by various means. Dishonesty has great leverage when this is permitted.

[Clock King]

This isn't stupidity.