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OT: Feds still screwing us..

From an investment newsletter: Today, the Federal Reserve announced it would use over $150 billion in annual proceeds from maturing mortgage and agency debt to buy Treasurys. The Fed says the economy's growth is slowing: "Information received since the Federal Open Market Committee met in June indicates that the pace of recovery in output and employment has slowed in recent months."

While the Fed isn't growing its balance sheet ? a slight positive ? it is monetizing U.S. debt (in essence, supplying credit to the U.S. government), which is the No. 1 action to take if you want to guarantee hyperinflation. This is Zimbabwe finance... straight out of the Mugabe playbook.

When the Fed buys Treasurys, it's not just manipulating rates in the U.S. Over 60% of the world's reserves are in U.S. Treasurys. So the Fed is manipulating borrowing costs for the entire world. The Fed's actions are a crime. It's paying back old debt with new money. That's the inevitable endgame for every paper currency.

Reply to
Robert Baer
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Economics is one of the many "sciences" where its experts know essentially nothing. Given that, the less power they have, the better off we are.

I don't think we'll have hyperinflation. 3:1 or so should do for now.

John

Reply to
John Larkin

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It's not Zimbabwe yet--this move is fairly trivial and mostly symbolic. And, they're buying Treasuries with actual assets: MBS (?!?), so that's not monetizing the debt AIUI.

If you want stuff that'll get your hair up though, it's out there. Try reading the SIG-TARP reports, or CBO's "Federal Debt and the Risk of a Fiscal Crisis," July 27, 2010, Economic and Budget Issue Brief

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Ugly.

-- Cheers, James Arthur

Reply to
dagmargoodboat

.

it

This one's more readable...

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ment.fortune/index.htm

-- Cheers, James Arthur

Reply to
dagmargoodboat

Hey who the f*ck R U?

-- Dr. Robert Bear, MD, FRCPC, (ex Vice Dean, Not James) American Board of Internal Medicine & Nephrology Certification Clinical trials, renal soiling, DEPENDS research, Dialysis population, no boners research Euthanasia Certified; Uncontrolled Pissing Expert Telephone 780-407-7239; Fax 780-407-7771 snipped-for-privacy@ualberta.ca

Reply to
ROBERT ALLAN "BOBBIE" BEAR.M

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Reply to
Spehro Pefhany

The recovery plan, in two paragraphs:

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-- Cheers, James Arthur

Reply to
dagmargoodboat

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Reply to
Spehro Pefhany

Some guy was drifting around in a hot-air balloon, and the balloon had a malfunction; luckily the guy landed in a field of soft grass. Spectators ran to see if he was OK - he was, but he asked, "Where am I?"

Someone said,"You're in the middle of a big grassy field."

Balloon guy says, "You must be an accountant."

"Why do you say that?"

"Because your answer is perfectly accurate and totally useless."

Cheers! Rich

Reply to
Rich Grise

The 16th amendment - the income tax: "AMENDMENT XVI

Passed by Congress July 2, 1909. Ratified February 3, 1913.

Note: Article I, section 9, of the Constitution was modified by amendment 16.

The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration."

pretty much signed the death warrant for Liberty in America as the Founding Fathers were striving for - Obammunism is simply driving the final nail in the coffin.

Sigh, Rich

Reply to
Richard the Dreaded Libertaria

The inevitable result of letting women vote:

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So maybe it's not a coincidence that Oprah helped give us Obama.

--

Reply in group, but if emailing add one more
zero, and remove the last word.
Reply to
Tom Del Rosso

...

.

The problem with mainframe government is that as lovely as punch cards are, nimbleness, diversity, and creativity don't batch-process well.

-- Cheers, James Arthur

Reply to
dagmargoodboat

Well...just let that compound..

Reply to
Robert Baer

Ratified? Nope...one state short..

Reply to
Robert Baer

The best version of that joke, IMHO:

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Reply to
Spehro Pefhany

We've already seen 3:1 or worse in the past ten years, by some measures (oil, gold). But inflation doesn't cure all those over-promises, since they're likely explicitly or implicitly indexed to inflation. All it does is steal from the people who lend money, and not even too much of that since they generally require for interest that at least matches the decline in value of the debased currency.

The real indication of doom would be a failure to sell debt, you know, like using the Fed as a shill to prop up T-bill sales. But that could never happen, right?

Reply to
Spehro Pefhany

Bush Jr. gave us obama.

Reply to
AZ Nomad

The Fed can only buy such securities with funds deposited by its member banks. If you don't like Federal Reserve policies, move your business to a non-Fed bank.

--
Paul Hovnanian  paul@hovnanian.com
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Have gnu, will travel.
Reply to
Paul Hovnanian P.E.

Ohhh...but it *IS* happening, now.

Reply to
Robert Baer

Printing money to the Nth degree is a policy..

Reply to
Robert Baer

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