The Coming Depression
Thursday, December 4, 2008
This doesn’t make any sense. The U.S. Government authorizes the Fed to create money out of thin air, which it will then use to buy up the debt of the U.S. Government that nobody else wants?
Is anyone who is currently holding U.S. Treasuries even reading the news? The auctions are going to fail, so the debtor is just going to snap his fingers and create the money to buy the debt that nobody else wanted to buy?
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How does the dollar not collapse on this?
The Bloomberg piece focuses on similarities between monetary policies in the U.S. and Japan, and highlights a couple, “Bernanke-San,” references, but there’s just one tiny fact that the article doesn’t mention. Japan is the third largest creditor in the world. Where does the U.S. rank, on the current accounts balance list? ACCOUNT BALANCES HERE. Scroll down. Keep going. More. Down. Down. Until it stops. That’s right. Out of 188 countries on the list, the U.S. is dead last, meaning that it is the largest debtor in the world. BANGLADESH is BETTER OFF THAN THE USA!
And the U.S. Federal Reserve is going to start buying U.S. Treasuries?
This article was posted: Thursday, December 4, 2008 at 1:48 pm