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To: fooman
Question I have been pondering is what if The Fed owns ALL the treasuries

The Fed repays to the Treasury whatever interest is earned on its bonds. So, borrowing -- from the government's point of view -- becomes free! It's every despot's dream.

Of course, the drop in the dollar's value as a result of all that money-printing is paid by us when we try to exchange those dollars for actual goods.

41 posted on 01/01/2013 1:56:34 PM PST by BfloGuy (Money, like chocolate on a hot oven, was melting in the pockets of the people..)
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To: BfloGuy

My question is a what point does world lose confidence in our treasuries.


44 posted on 01/01/2013 2:02:06 PM PST by fooman (Get real with Kim Jung Mentally Ill about proliferation)
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