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IPFS News Link • Federal Reserve

A Must Read: The Fed Buys Last Week’s Treasury Notes

• Investment Watch
Good grief! Just last week, when the auction results were announced it was trumpeted to great fanfare that there was “more than sufficient” bid-to-cover, “strong demand” and all the rest. And now it turns out that 47% (!) of the bonds that were taken by the primary dealers in that auction have been quietly bought by the Fed and permanently secreted to its balance sheet. They didn’t even wait a full week! A more honest and open approach would have been for the Fed to simply buy them outright at the auction but this way, using “primary dealers” and “POMOs” and all these other extra steps the basic fact that the Fed is openly monetizing US government debt is effectively hidden from a not-too-terribly inquisitive US press and public. The speed of the shell game is accelerating.”

1 Comments in Response to

Comment by William Klepzig
Entered on:

 When credit cards were king, one ploy was to shift your debt from one card to another thus cutting interest or payment date.  The O'man and his stupid educated leadership is doing the same thing.  The purpose is to extend the date when you will receive the bill and to hide the fact that they have no new ideas, are as entrenched in politics for big business as the Republicans and have little interest in making a better safe free from debt country.

Here is what is going to happen.  By 2011 interest rates will be double digit in the sixty percent range.  The value of a dollar will be at five to eight to one.  That means your beer will cost six times more because of the golden credit card of the O'man.  Unemployment will be pushing twenty percent as figured by the fed and thirty five percent as we the people know it.

Or, we can be at five percent unemployment, or full employment as it is acknowledged that five percent of workers will be not employed at any one time.  Wages will be set so you can afford a home, medical, cars and food.  Jobs will be expanding faster then  business can find workers and we have a positive trade balance because we have cut buying from China and the world, making it here and have cut fuel by thirty three percent.

The choice is yours.  America or the two parties that have allowed this problem to grow.  Midamerican 2010

Casey



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