In 2011 the Fed purchased 61% of all debt issued by the Treasury Department.
The Federal Reserve is propping up the entire U.S. economy by buying 61 percent of the government debt issued by the Treasury Department, a trend that cannot last, Lawrence Goodman, a former Treasury official and current president of the Center for Financial Stability, writes in a Wall Street Journal opinion article published Wednesday.
“Last year the Fed purchased a stunning 61 percent of the total net Treasury issuance, up from negligible amounts prior to the 2008 financial crisis,” Goodman writes.
Goodman also warns that U.S. economy and markets are “at risk for a sharp correction” if conditions aren’t “normalized.”
“This not only creates the false appearance of limitless demand for U.S. debt but also blunts any sense of urgency to reduce supersized budget deficits.” Continue reading
If you’re interested in learning how to drive a stake into the heart of the welfare and warfare state then read this post…
As my original post and follow-up post explained, until a year ago I didn’t have hardly any real understanding of the monetary (and banking) system. You might find it helpful to listen to the this talk given by G. Edward Griffin. It caused a paradigm shift to occur with how I understood these matters and how I now invest. It may be one of the most important hours you ever spend studying a secular topic. You can listen to it straight off Google videos. Make the time to listen to it.
After listening to his talk watch the following helpful video on the Federal Reserve. For some unknown reason the video doesn’t automatically begin so give it a tiny nudge forward and it will begin playing.
Read the following books on the topic.
Educate yourself. After all it’s October. It’s ok to be shocked and scared straight!