Thursday, March 19, 2009

Fed "Pulling Out All the Stops"

The important part of of Bernanke's announcement:

On a serious note, the net result of the FOMC's recent action is that our children now owe private, mostly non-citizen, international bankers an additional $690B or so in long term debt after interest. This is nothing more than the privately owned Federal Reserve achieving their main objective: more debt, more debt, more debt.

Remember, when the Fed "buys" bonds that means the People are being forced to exchange MONEY (a promise that our children toil on behalf of the Federal Reserve's private shareholders) for nothing more than printed paper CURRENCY. In other words, the Fed isn't buying anything, they are selling freshly printed cash for money.

The chart below is lifted from Inflation vs Deflation. Note, it changes very little, because $300B plus interest, while an insane amount of MONEY to hand over to the Federal Reserve for doing absolutely nothing, is peanuts compared to total commercial counterfeiting operations gone bad.

The deflationary outlook is mildly increased, $300B in new cash enters the system in exchange for a $690B net drain.


  1. FDR,

    Is it possible that we are already in primary counter wave 2? Sure appears so.

  2. At what point does it start to mean something? Putting in context: I realize there's something like 700 TRILLION in derivatives out there. And that gov't debt is already massive. They've applied a 9 TRILLION band aid so far. Now they appear to be getting desperate more and more. Now they buy treasuries direct. $300 BILLION becomes what? Becomes what? Etc....

    I assume it ends and no place good?

    BTW... I'm very stressed out here with everything but I continue to appreciate your blog and thank you for everything you do here. Sometimes I think I've lost it lately. Your words bring me some needed comfort.

  3. We watch as the monkeys run this country into bankruptcy.

  4. Attempting to stave off a depression through quantitative easing will only result in the united states of japan,though I doubt it will be that benign the Japanese had savings.


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