Featured Stories World News Commentary Money Watch Multimedia Prison Planet U.S. News Science And Technology

In 2009, the Federal Reserve Bought 80% of U.S. Debt?!

  • Print The Alex Jones Channel Alex Jones Show podcast Prison Planet TV Infowars.com Twitter Alex Jones' Facebook Infowars store

cryptogon.com
Monday , January 11th, 2010

Update: CNBC: “I Guess You Can Use the Word Ponzi Scheme”

 

—End Update—

Am I reading this right!? Someone tell me I’m not reading this right.

Via: Pimco:

Here’s the problem that the U.S. Fed’s “exit” poses in simple English: Our fiscal 2009 deficit totaled nearly 12% of GDP and required over $1.5 trillion of new debt to finance it. The Chinese bought a little ($100 billion) of that, other sovereign wealth funds bought some more, but as shown in Chart 2, foreign investors as a group bought only 20% of the total – perhaps $300 billion or so. The balance over the past 12 months was substantially purchased by the Federal Reserve. Of course they purchased more 30-year Agency mortgages than Treasuries, but PIMCO and others sold them those mortgages and bought – you guessed it – Treasuries with the proceeds. The conclusion of this fairytale is that the government got to run up a 1.5 trillion dollar deficit, didn’t have to sell much of it to private investors, and lived happily ever – ever – well, not ever after, but certainly in 2009. Now, however, the Fed tells us that they’re “fed up,” or that they think the economy is strong enough for them to gracefully “exit,” or that they’re confident that private investors are capable of absorbing the balance. Not likely.

In 2009, the Federal Reserve Bought 80% of U.S. Debt?!  040110banner2

This article was posted: Monday, January 11, 2010 at 5:44 am





Infowars.com Videos:

Comment on this article

Comments are closed.

Watch the News

FEATURED VIDEOS
NY Times Publishes Fabricated Evidence to Sell WW3 See the rest on the Alex Jones YouTube channel.

Inside Information: A Trail Of Evil See the rest on the Alex Jones YouTube channel.

© 2013 PrisonPlanet.com is a Free Speech Systems, LLC company. All rights reserved. Digital Millennium Copyright Act Notice.