Denninger decodes the latest from the banking cabal.H/t to another patriot, who sends these two links:
Fed To Buy US Debt
Monetizing the Debt - An Explanation For Non-Economists, Bankers, and Other Laymen
I'm sure everything will be all right.
Hasn't it always been this way?
(insert eye roll)
"[T]he Committee will keep constant the Federal Reserve's holdings of securities at their current level by reinvesting principal payments from agency debt and agency mortgage-backed securities in longer-term Treasury securities..."
ReplyDeleteIt is not clear what MBS tranches the Fed is holding but Fannie and Freddie would be unable to pay on most of them if it were not for generous subsidies provided by the US Treasury.
Because of declining tax revenues, the US Treasury is unable to fund the expense of government and is running a steep deficit. It must borrow money by selling bonds, which the Fed proposes to buy.
So we have the unseemly spectacle of the Fed creating money to buy bonds so the Treasury can loan money to the GSEs so that they can make interest and principle payments on the MBSs that are held by the Fed.
In short, the Fed is printing money to pay itself for holding bad mortgage debt.
How long will this carousel keep spinning before someone gets sick and falls off his horse?
MALTHUS
The local evening news had a representative of the retail merchants association or someone on today, already talking about "one of the most promising and profitable holiday shopping seasons in years."
ReplyDeleteIn early August.
My wife informs me that it only takes a couple of hundred dollars a month withdrawn from our life savings (now down to $8,000) to subsidize her pay, our boarder's pay and my unemployment insurance, to keep up with the bills.
Radio talk hosts say federal employees make about twice the salary of those in the private sector, and frequent raises are 30% beyond the cost of living increase inflation calls for.
It's been this way ever since 1913.
ReplyDelete"Fed To Buy US Debt"
ReplyDeleteThat's ok with us. The fantasy rescue remedy goes like this: Let the FED shareholders get stuck with the bill, and then we can send the US Armed Forces snipers on their way back from Iran to "settle things" permanently. Of course, this assumes the commanders are loyal to the US Flag, and have not been paid off by the banking cabals.
After the battle for US Sovereignty is won, we can restore Article 1 Section 8 back to Congress (i.e. honest money).
OK, time to wake up now.
A few weeks ago you posted a cartoon: two boats with men shoveling from their boat to the other. Could you please re-post.
ReplyDelete