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Strategies & Market Trends : The coming US dollar crisis
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To: Paxb2u who wrote (49307)1/8/2013 9:58:13 PM
From: Real Man  Read Replies (1) of 71456
 
The treasury part only started in January 2013.
It looks like they have just put the MBS off balance
sheet into a separate category. We have yet to see
what they do with the treasuries, but, most likely,
they can't get these purchases off balance sheet,
pretending this is "temporary printed money" to be
unprinted (sterilized) in future.

But, yeah, what you mentioned is called direct
monetization of government debt. Mugabe learned
that this kind of money printing is very inflationary.
Under such circumstances the central bank, or Fed,
prints money and pays for government operations directly,
no need to issue debt.
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