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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives
SPY 690.270.0%Dec 26 4:00 PM EST
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To: GROUND ZERO™ who wrote (44928)1/30/2013 1:17:34 PM
From: expiredoptions1 Recommendation  Read Replies (1) of 220711
 
GZ, good answer! and another interesting point is when money is created out of thin air, we have to
sell treasury bonds to other countries to help pay for this debt.
This didn't use to be a problem until recently the other countries see our debt problems:
$2.7 trillion taxes taken in,
$3.8 trillion paid out.
$16.4 trillion national debt (sold treasury bonds)
Plus the Federal reserve is holding another $3 trillion on their books (much of it is crap mortgages but some
is our own treasuries that are suppose to be bought by other nations),
and spending another $1 trillion on these monthly giveaways ($85 billion a month until infinity)

When the rest of world finally figured out the extent of our financial woes , they cut back and are not buying enough of our treasury bonds. So the Fed is now buying $45 billion a month of our own treasuries to help finance this catch 22 management method.

That's why instead of the Fed's balance sheet dropping after the sale of new treasurers, its actually increasing! (to the highest level in history!)

Blue line below is taxes taken in ($2.7 trillion) Red Line below is money paid out ($3.8 trillion).

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