Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Market Guru of the Month Contest -- Ignore unavailable to you. Want to Upgrade?

To: Fiscally Conservative who wrote (13042)	12/21/2012 7:41:57 PM
From: Wayners	1 Recommendation Read Replies (1) \| Respond to of 17549

Austerity has to happen. Some people say we can just print our way out. I say they're wrong. The Federal Reserve coins all money. All monies created by the Mint are sold at cost to the Federal Reserve. The Federal Govt is not allowed to create and spend Federal Reserve Notes, the money of Private Commercial Banks. They cannot print their way out of this. All they can do is print Bonds and hope somebody, including the Federal Reserve buys them. The Federal Reserve is under no obligation to do anything. I used to have an article where a Federal Reserve boardmember said exactly that. They have no obligation whatsover to buy U.S. Treasuries. This means that a default is real and highly likely. There is no way to print our way out. We are owned by the Federal Reserve.