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Fed bought 61% of US debt!

Discussion in 'The Okie Corral' started by Kozel, Mar 31, 2012.

  1. Kozel

    Kozel

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    Fed bought 61% of US debt!

    With what? Fake trillions they imagine into existence anytime they feel like it?!

    http://online.wsj.com/article/SB100...5393064.html?KEYWORDS=us debt federal reserve

    This country has been bankrupt for nearly three years now. Some time in 2009 US could no longer sell enough debt to finance deficit and Fed bought most of it since.
    Three years running on fake money! How much longer can this insanity last? They act like they can do that forever.
     
  2. Atlas

    Atlas transmogrifier

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    From the Wall Street Journal, no less...
    Probably a credible source, yes?
     
    Last edited: Mar 31, 2012

  3. bchandler

    bchandler

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    It's like opening a new credit card to pay for an existing credit card's balance, and thinking everything is all right, lol.
     
  4. Kozel

    Kozel

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    Add to that “I will buy your debt if you buy mine” game US is playing with Brits and, probably, Euros. Each side creates more money and buys debt of another country. Europe runs on that scam. US maybe too.
     
  5. Sporaticus

    Sporaticus Aw sheet main

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    To me, the bigger question\concern is WHY are they doing it? I don't mean Bernanke and the Fed buying the debt.
     
  6. The Machinist

    The Machinist Please! Please! No more!

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    I have it on good authority that the US can run up hundreds of trillions of dollars in debt, and that our financial system is unbreakable. The history of empires throughout the ages doesn't apply to us. Now enough of this doom and gloom nonsense. There are more important things to worry about, like basketball, American Idol, and Kim Kardashian.
     
  7. M&P15T

    M&P15T Beard One

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    Might be close to true, World economy and all that.

    If we go down, we'll drag everyone else down with us.

    Things are not like they were 100 years ago, when individual countries economies were self-contained units.

    Still, I'm no economist.....that's just how things look to me. Surely ya'll will correct me if I'm wrong.
     
  8. paynter2

    paynter2 It ain't over Millennium Member

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    If I'm not mistaken this has been going on for some time. Since the rest of the world has cut back on US debt purchases, the FED has stepped up to the plate.

    It's referred to as 'monetizing' the debt. They give it an official sounding name to hide the fact that it's an act of desperation.
     
  9. Atlas

    Atlas transmogrifier

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    If I am not mistaken, there are other euphemisms for this as well.
     
  10. arclight610

    arclight610

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    "The Bank "never goes broke." If the Bank runs out of money, the Banker may issue as much as needed by writing on any ordinary paper."

    -Excerpt from Monopoly rulebook-
     
  11. Javelin

    Javelin Got Glock? Silver Member

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    Here is a video where our Federal Chairman Barnanke testified to Congress that he will not monetize the National Debt (he lied under testimony... hint: normally you go to jail for lying to even a local judge let alone Congress & the US House Representatives).

    [ame="http://www.youtube.com/watch?v=WA9Rm77rq-4"]http://www.youtube.com/watch?v=WA9Rm77rq-4[/ame]

    [ame="http://www.youtube.com/watch?v=n6qo2S84r5w"]http://www.youtube.com/watch?v=n6qo2S84r5w[/ame]

    Barnanke began monetizing the debt on November 5th, 2010 (day after the elections when the Democrats were trying to take over Congress).

    :steamed:
     
  12. hammerkill

    hammerkill chinese name but all american Silver Member

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    The game is over. I am spending money like a drunken sailor before it is worth nothing.
     
  13. Calico Jack

    Calico Jack NO QUARTER

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    I've always found that rather ironic.
     
    Last edited: Mar 31, 2012
  14. Peace Warrior

    Peace Warrior Am Yisrael Chai CLM

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    China stopped being the fed-reserve's fool when they stopped buying our debt. Someone's got to "buy" it, and no one is dumb enough to do it, so the fed invents "quantitative easing" to further bankrupt us.

    hey folks, we didn't fire the DC fat-cats after the first 700 billion. They know we ain't going to do anything now as well.
     
    Last edited: Mar 31, 2012
  15. Javelin

    Javelin Got Glock? Silver Member

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    Exactly. But 700 Billion was actually a lie. The real number for the bailout was 7+ Trillion thanks to Barnanke and Obama, they lied to us and Congress is denying even knowing what they did..

    If no one on the open free markets will buy our debt then the Government will make the US Citizen buy it through totalitarian rule.

    Fun times ahead for all. Just look at the laws being passed as of late.

    Consider it indentured servitude (ie Slavery). If you don't know what that is then I suggest you google it and look it up for yourself.
     
    Last edited: Mar 31, 2012
  16. Peace Warrior

    Peace Warrior Am Yisrael Chai CLM

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    Can I quote nancy patricia d. pelosi?

    "But we have to pass the [health care] bill [first], so you can find out what is in it."
     
    Last edited: Mar 31, 2012
  17. Obi Wan

    Obi Wan

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    I'm beginning to wonder if I should even bother to continue to scramble to pay my mortgage, etc, etc. The fact that Congress continues to allow this crap pile to grow higher and higher and not call Obama and the Fed on it... along with themselves... says we're screwed no matter what the rest of us do.
     
  18. Z71bill

    Z71bill

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    Imagine what will happen if the FED tries to unwind their balance sheet - and allows the securities they have purchased to mature - without buying additional securities.

    This means not only will someone need to lend the government an amount = to whatever the current deficit will be - but also - make up for the FED debt that is being paid off.
     
  19. RowdyatHeart

    RowdyatHeart

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    If we all have this attitude, things will be worse. We have to press on and do the right thing. Remember, we have a divisive demagogue leading our country now. A positive leader would change our outlook. Half of it is 90 percent mental when it comes to markets and the economy.

    Our President hopes you will be in despair now. He wants you to think that he and government are the only solution. Keep your chin up. Help is on the way if we get out and do our job in November.