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Author Topic: In 2011, The Federal Reserve bought 61% of the US Debt [Locked]
Brother_Tempus  3 stars
Title: Patriot
Posts: 985
Registered: 2001-1-9 08:07:00
Monetization of the debt eventually leads to a currency's demise and a collapse on the nation;s economy

http://online.wsj.com/article/SB10001424052702304450004577279754275393064.html?mod=googlenews_wsj

The conventional wisdom [ EDIT : Delusional Stupidity ] that nearly infinite demand exists for U.S. Treasury debt is flawed and especially dangerous at a time of record U.S. sovereign debt issuance.

The recently released Federal Reserve Flow of Funds report for all of 2011 reveals that Federal Reserve purchases of Treasury debt mask reduced demand for U.S. sovereign obligations. Last year the Fed purchased a stunning 61% of the total net Treasury issuance, up from negligible amounts prior to the 2008 financial crisis. This not only creates the false appearance of limitless demand for U.S. debt but also blunts any sense of urgency to reduce ...

 

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__Bonk__  5 stars
Posts: 5,122
Registered: 2009-7-25 03:04:52
You need to be an expert to understand US monetary policy

 

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Brother_Tempus  3 stars
Title: Patriot
Posts: 985
Registered: 2001-1-9 08:07:00
__Bonk__ posted:

You need to be an expert to understand US monetary policy





That's what the government wants you to think ... monetary policy is just plain common sense. The problem is the re is a lack on that common sense in the socialist Keynesian ideology that runs rampant in the government, academia and the Federal Reserve

 

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__Bonk__  5 stars
Posts: 5,122
Registered: 2009-7-25 03:04:52
It is not just common sense. Its like the law and very complicated and difficult to understand. Just posting a link or two doesnt make you an expert on it.

 

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paulg_68  4 stars
Posts: 2,469
Registered: 2009-7-27 18:45:54
Printing so much money will inevitably lead to inflation. When inflation hits, no one will lend us money at low interest rates.

If you think we're running big budget deficits now, try rerunning the numbers with us having to pay 10% interest on $15 trillion of debt.

 

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ZigmundZag  4 stars
Title: Grammar Nazi
Posts: 1,211
Registered: 2002-3-25 23:03:00
paulg_68 posted:

Printing so much money will inevitably lead to inflation. When inflation hits, no one will lend us money at low interest rates.

If you think we're running big budget deficits now, try rerunning the numbers with us having to pay 10% interest on $15 trillion of debt.



Your predictions of hyperinflation are becoming as dull and predictable as Illmyrin's predictions of a war with Iran.

 

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Bjorvald  2 stars
Posts: 334
Registered: 2002-4-5 20:51:00
>> If you think we're running big budget deficits now, try rerunning the numbers with us having to pay 10% interest on $15 trillion of debt.

Not a problem.. We'll just print even MOAR money.

 

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Mastara  4 stars
Posts: 1,446
Registered: 2004-12-29 22:52:21
yep, they will print more money

 

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Aerlinthian  4 stars
Posts: 2,126
Registered: 2001-5-7 23:53:38
Mastara posted:

yep, they will print more money


paulg_68  4 stars
Posts: 2,469
Registered: 2009-7-27 18:45:54
ZigmundZag posted:

Your predictions of hyperinflation are becoming as dull and predictable as Illmyrin's predictions of a war with Iran.


That's a first. I've never before bored someone with something before I've done it even once.

 

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