Fed to Buy US Debt — Why We Should Be Worried

Last Tuesday, the Federal Reserve claims to be “concerned” about the slow pace of the economic recovery. It said that it has lost confidence and therefore would buy relatively modest amounts of government debt. The Fed also leaves open the possibility that additional quantitative easing (read: money printing) could take place in the fall “if” the recovery were to continue to weaken. Well, I think we all know what the outcome is going to be.

Whether the Federal Reserve is REALLY concerned about the weakening economy, I’m not so sure. After all, it is one of the reasons why this economy is not getting better in the first place.

In the name of “being concerned about the economy” the Federal Reserve decides to buy the US debt as much as $10 billion a month of new Treasury  securities. This was said to be a “small fraction of the roughly $700 billion in Treasury debt sitting on the Fed’s balance sheet.”

Now this is where we should get worried. The Federal Reserve was created as a way to enslave the US with debt. It is currently the #1 holder of the US debt as listed on this article. The Economic Collapse Blog explains how it drains the US off their wealth and trap it even deeper into debt:

So, when the U.S. government needs to borrow more money (which happens a lot these days) it goes over to the Federal Reserve and asks them for some more green pieces of paper called Federal Reserve Notes.

The Federal Reserve swaps these green pieces of paper for pink pieces of paper called U.S. Treasury bonds. The Federal Reserve either sells these U.S. Treasury bonds or they keep the bonds for themselves (which happens a lot these days).

So that is how the U.S. government gets more green pieces of paper called “U.S. dollars” to put into circulation. But by doing so, they get themselves into even more debt which they will owe even more interest on.

So every time the U.S. government does this, the national debt gets even bigger and the interest on that debt gets even bigger.

Source: The Economic Collapse blog

By taking over the US debt, the Federal Reserve gains even more power to drain the US wealth which transfers greatly into the pockets of the global elite. By 1st of July the US has made payment on interest as much as $355 billion in 2010 alone which goes to the holders of the US debt — the wealthiest individual around the globe.

Popularity: 8% [?]

This entry was posted on Wednesday, August 11th, 2010 and is filed under World Economy. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.
«
»
Comments have been disabled for this post.
Sort: Newest | Oldest
Currancy Converter

Good article,very Nice.

share
  • spam
  • offensive
  • disagree
  • off topic
 Like