What do they mean “is the Fed Monetizing Debt?” There would be no “money” in circulation today AT ALL if the Federal Reserve weren’t monetizing debt! (No disparagement of the Crown of St. Peter intended….)
IS THE FED MONETIZING DEBT?
These charts are so symetrical. The Fed has purchased $297 billion of Treasuries and $945 billion of Mortgage bonds since March. They have done this to artificially reduce interest rates to benefit mega banks and risk taking borrowers. They have done this on the backs of Senior Citizens who now get .30% on their MM funds. You may ask yourself where did the Fed get the $1.242 Trillion to buy these bonds. When you have a printing press it’s easy. They created the $1.242 Trillion out of thin air. And you were wondering why the value of the dollar continues to fall. These two charts are a picture of the biggest Ponzi scheme in history. Ben Bernanke makes Bernie Madoff look like a two bit small time criminal.
“Free cheese is only found in mousetraps.” — Russian proverb