Fed Holdings Of U.S. Treasuries Surpass China's

Seeking Alpha ^ | 2-6-2011 | Doug Carey

[CodeToad]

This is nothing but money laundering, a complete and total crime.

[Tainan]

Priming the pump.

Thanks. That sounds more familiar.
All I know is that if this type of fiscal (ir)responsibility continues we'll be suckin' sand.

[Pelham]

The Bond Vigilantes will have more control over events than the Fed, just as they did in the ‘70s. Once they decide that too many dollars have been created they will start selling long term Treasuries with a vengeance, sending long term rates soaring. The Fed has only a limited time that they can use their QE tool.

[blam]

"A friend of mine is currently fabricating 47k# per day with his contracts going way above that and it’s really smarting!"

I think Greysard described your friend in post #27.

[The Comedian]

Isn’t it still just funny money . . . a vast shell game?

Yes, but under one of those shells...is nothing. Just like the other ones.

Today is a good day to die.
I didn't say for whom.

[Leisler]

We’re all going to get our own personal unicorn that craps Skittle rainbows.

[pointsal]

Looks like the virgins at the Federal Reserve Bank are self-certifying their purity.

Why am I skeptical?

If the FED has crap on the books, when (Oh when?) will it be market to market and called speculative junk? ...

...Just curious....

[Quix]

RIGHT.

[Cold Heart]

How much gas at $10 will anyone buy?

A local gas station doubled it’s prices early morning of 9/11. The only reason I know that is because a home health nurse was headed out early morning to see a patient and needed gas. Nobody else needed gas that bad and by late morning the jerks had dropped their prices back to where they were when they were bypassed by everyone else.

That’s about all we have to control prices.

[OneWingedShark]

Ah, a fan of Red Dwarf, I see.

[blam]

"That’s about all we have to control prices."

Here on the Gulf Coast we have gouging laws for hurricanes. The locals mind their P's and Q's though...we've put local gougers out of business afterwards too, people boycott them.

The locals have actually realized that it is a good time to show that they are a part of the community by helping where they can, like free ice, water and etc during black-outs. One restaurant provided 1/2 off meals for relief workers that come from out of state.

[April Lexington]

Well... as P.T. Barnum once said... “There’s a sucker born every minute!”

[April Lexington]

Ask this simple question... if the Treasury offers bonds and nobody buys them at the”target” interest rate except the Fed, who will buy those bonds from the Fed? Buyers will offer substantially less than the Fed paid to compensate for the added risk (real interest rate). If the Fed just holds to maturity, the Treasury will have to cough up the dough to pay off the bonds. It will either have to raise taxes on the stupid American serfs or issue more bonds to pay off the old bonds. Who will buy the new bonds at such low interest rates? Answer... the Fed. Money is now an illusion. The government has severed public spending from the tax paying base. It now taxes the peasants until they squeal and borrows the rest. From who? Not the Chines anymore. Nope. The Fed. The guys with the unlimited cash supply. So... watch public spending increase unabated and watch the money supply explode. Then... watch yourself become poor as the currency collapses. There is no stopping the nightmare now. The Government has figured out how to spend money without the burden of howling tax payers or recalcitrant lenders. Just pull it out of thin air and spend it to keep power.

[ccmay]

Like a thirsty man drinking his own piss. Ain’t going to work.

[April Lexington]

foreign governments hold about 4.5 trillion. that leaves almost 9 trillion. Who holds that?

Mutual funds and banks, mostly. Think about that. wipe the vomit off your shirt and buy gold. NOW...

[April Lexington]

Rolls of nickels could very well ave your life. Digital money may disappear but approximately 8-10% of money is paper and coin. Those who have paper and coin will be able to trade. Those with digital money will have to resort to barter or robbing those with paper money and coin. There will be nothing else to use until the next government issues some kind of new money... ugly times. So... rolls of nickels and pennies could save your life. keep the gold and silver for the remonitization.

[blam]

"There is no stopping the nightmare now. "

Yup.

I guess there are many ways to say it, my old poker playing buddies have been saying for a couple years now that 'there's no peaceful way back from here.'

[blam]

"Like a thirsty man drinking his own piss. Ain’t going to work."

It does for a little while.(Same as this)

[blam]

"There will be nothing else to use until the next government issues some kind of new money... ugly times."

A bag of dried beans will get ya something.

A bowl of bean and bacon soup with corn bread, sliced fresh tomatoes and a glass of sweet Southern style tea will get you even more.(prepare now)

[TheOldLady]

Now’s a good time to end the FED.

Hire bodyguards and a food taster.