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Novus wrote:It is gone on blatantly for 9 months already and the national robbery will continue until the people rise up with torches and pitchforks and hang em high.
The United States HAS OFFICIALLY HIT THE TREASURY DEBT WALL and The Fed and Treasury are engaged in subterfuge and conspiracy in an attempt to hide this from the market.
we had two failed Treasury Auctions last week, both 5 and 7 year, yet we intend to try to borrow ANOTHER $400 billion next quarter and nearly $100 billion this coming week
The Fed has bought $225 billion in notes/bonds and $553 billion in mortgage securities over the last year. So a significant portion of all new bonds/notes/mortgages have been monetized - that is paid for by the issuance of new Fed fiat money. Historically such high rates of monetization have been associated with high rates of domestic inflation, although in Japan's case, the extra money went mostly to the US and helped pump up the housing bubble (along with the Fed).
DantesPeak wrote:So yes, the Fed can and does buy Treasury securities on the day they are issued - but this information is not secret, and I don't see any solid evidence that are making secret purchases somehow.
truecougarblue wrote:It is Obama's fault because during the first few months of his administration he and his have multipied the horrific Bush deficit 5X, thus necessitating the Treasury/Fed two step.
DantesPeak wrote:How is Bernanke lying - the subject of this thread - Obama's fault? Bernanke served in the Fed a long time under Bush. I very much doubt if Obama was to pick someone for Fed chief, Obama would have picked Bernanke.
Granted someone Obama might, or might yet pick, could be worse. But the Fed's money base was already near the same levels as now as when Obama came in, and it's not clear how much influence Obama has over the Fed.
The cynical answer is that he’s running for re-election, although the chairman of the Federal Reserve is appointed, not elected. Bernanke was appointed by George Bush and his four-year term expires in January. He would clearly like to stay in office, which would take a single vote, that of President Obama.
DantesPeak wrote:truecougarblue wrote:It is Obama's fault because during the first few months of his administration he and his have multipied the horrific Bush deficit 5X, thus necessitating the Treasury/Fed two step.
I challenge you to go back and look at what the Fed did before Obama became President, and provide some proof supporting what you said about the Fed.
The budget deficit ran at about a $1 trillion rate in the second half of 2008 under Bush. Much of the increase this year are for programs passed under Bush, like bailing out Fannie Mae and Freddie Mac, plus a huge increase for Medicare and extra unemployment benefits. Granted Obama has added to that, but only a fraction of the expected deficit this year. Let's not distort the facts, there will be enough blame to go around to everyone by the time this depression is finished (if ever).
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