Fed to Buy Extra $600 Billion of US I.O.U’s
In what is seen as a plan to devalue the dollar by up to 20% the Federal Reserve announced its plan to buy $600 BILLION in US Treasury notes (I.O.U.’s) with newly printed money.
What? Buying our own debt? And this will help how?
From Monty Pelerin’s World:
John Myers explains why an election solves nothing because if it leaves the Federal Reserve intact:
I write this before the elections have happened, so I don’t know if the GOP won. But what should scare you is that it doesn’t matter. Congress could include Santa Claus, the Easter Bunny and the Tooth Fairy, and as long as we have a Federal Reserve acting as recklessly as the one now controlling our economic fate, we are in a lot of trouble.
From usACTIONnews.com:
The Federal Reserve Chairman Ben Bernanke has told us the truth. The United States is on the Brink of Financial Disaster. The US Federal Reserve is now the second largest owner of US Treasuries. We are buying our own debt. Think about that for a minute.
Its like you writing rubber checks. You want more money so you write a check on an account that has no money in it. You use that check to make the credit card payment. Then you run up another credit card and write more checks to make the payment on both cards. Get the picture?
In 1966 Alan Greenspan who became Chairman of the Federal Reserve form 1987 through 2006 said this:
“Stripped of its academic jargon, the welfare state is nothing more than a mechanism by which governments confiscate the wealth of the productive members of a society to support a wide variety of welfare schemes. A substantial part of the confiscation is effected by taxation. But the welfare statists were quick to recognize that if they wished to retain political power, the amount of taxation had to be limited and they had to resort to programs of massive deficit spending, i.e., they had to borrow money, by issuing government bonds, to finance welfare expenditures on a large scale.”
That is exactly what we are doing now. To prop up the politicians that will continue the ponzi scheme on the American people, the Federal Reserve is creating money out of thin air to buy bonds which are US I.O.U.’s. This will devalue your money by at least 20% and perhaps make it totally worthless.
They admit they don’t know if it will even help.
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