http://www.ft.com/cms/s/0/120372fc-2e48-11e0-8733-00144feabdc0.html#axzz1Cohbl6DB
The Federal Reserve has surpassed China as the leading holder of US Treasury securities even though it has yet to reach the halfway mark in its latest round of quantitative easing, according to official figures.
As Scoby-doo would say “Rhuut-rhoooo”.
I wonder how many people are confused by this. I know very few people that realize that the Fed is not a gov entity. I do believe the rhuut-rhooo happened years ago;)
It’s a tacit admission that they are printing money - QE is purely an attempt to “prime the pump” and it didn’t work in the Seventies either.
B_C
It is like priming the pump that fills the barrel we are sitting in.
No wonder the Chinese are so hacked off at us. How would you like to be bidding for something (bonds) when the joker next to you is playing with Monopoly money?
For all the people that said that China had us by the short hairs over the debt, what does it mean now that the Bernake has more of our debt?
When all this unravels, it is going to make the 2008 events seem like a splash in the pond compared to the coming tsunami.
Bankers only own you if they can be paid back. The Chinese are hacked off at our policy because we’ve spent so much now that they are starting to realize we can’t pay it back unless we use dollars that are devaluated. When you are into them for as much as we are, you start to own them, because if we go down, they go down.
B_C
Yep. In 1913.