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Federal Reserve Money Printing does not Produce “Expected” Results

Posted by mrfixit on November 16, 2010

I was going to make this an update to my prior post about inflation:

https://minorityrightsadvocate.wordpress.com/2010/11/09/massive-inflation-is-coming-protect-yourself-get-away-from-cash-investments-now/

But this stands on its own as a new post.

The Experts seem to consistently cloud reality with a bunch of confusing facts and figures.   Here they opening line really says what needs to be said, the rest tries to cover it all in a sea of relative useless data:

http://online.wsj.com/article/SB10001424052748703326204575616321781875884.html?mod=WSJ_hp_MIDDLENexttoWhatsNewsTop

So, the Fed move to buy MASSIVE amounts of Treasury debt.  (PRINTING MONEY).  Part of the plan is to keep the interest rates low, it is supply  and demand, if there are plenty of BUYERS the seller can reduce the profit margin and still get buyers.  That is what is in play here, the Fed is buying the US debt, which is odd since the Fed is a quasi US entity, meaning it is MONEY PRINTING. They are buying debt with fake money in essence, to prevent the need to raise the rates to entice other buyers, but it is not working as planned.  Why? – well the article misses what I think should be obvious and MOST alarming.  Other buyers are not taking, but many are SELLING, even with low rates.  This is flooding the market, which means the treasury has to raise rates to continue selling this debt, that is YOU paying more at some point to finance an overspending government.

Why would the other buyers sell?  Simple, they can do it without the total collapse since the Fed is buying what they sell!  The other debt holders are looking for an exit opportunity, but without creating a panic that might create a collapse.  They are losing confidence in the future economic security and ability of the US to pay back its debts, that and the ongoing devaluation of the dollar, already a 30% drop in about the last year, well that makes the US a very poor investment.  They are looking to get out while they can. 

We are teetering on the edge, it is going to take a small spark to ignite this powder keg, are you prepared to weather the coming storm?  If not, START NOW!

Previous post about “experts”:

https://minorityrightsadvocate.wordpress.com/2010/10/28/why-are-the-%e2%80%9cexperts%e2%80%9d-always-puzzled/

Update:

The progressives are calling it, and WELCOMING the collapse!:

http://www.theblaze.com/stories/preparing-for-revolution-progressive-media-knows-food-crisis-and-violence-are-coming/

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2 Responses to “Federal Reserve Money Printing does not Produce “Expected” Results”

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