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IT'S OFFICIAL! : The FED Is Now Buying European Government Bonds

IT'S OFFICIAL! : The FED Is Now Buying European Government Bonds

As if the ‘risk-less’ dollar-swaps the Fed has extended to any and every major central bank were not enough, William Dudley just unashamedly admitted that the Fed now holds ‘a very small amount of European Sovereign Debt’. Explaining this position, as Bloomberg notes:

*DUDLEY: FED HOLDS OVERSEAS SOVEREIGN DEBT TO MANAGE RESERVES
*DUDLEY: HIGH BAR FOR ADDITIONAL PURCHASES OF EUROPE DEBT
Dudley, testifying to a House panel, noted that he doesn’t see more efforts by the Fed to buffer the US from Europe’s tempests and believes European banks are deleveraging in an orderly manner. So not only is the US taxpayer bailing out Europe via the IMF (as we noted here a week ago using Greece as an intermediary) and the Fed is providing limitless USD swap lines but now we join the ECB in monetizing European government bonds – something we warned might happen back in December 2010. As for being a small amount – wasn’t MF Global’s holding relatively small too? And aren’t we getting a little full from all this buying?

Read more:
http://sgtreport.com/2012/03/its-official-the-fed-is-now-buy...

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And after europe is strong again....

They will let america and its tons of debt collapse. and no one will help us.

We are being the pig led to the slaughter.

its sad

THIS IS A DIRECT VIOLATION OF THE 1913 CHARTER and RON PAUL SHOULD HAVE THEIR HEAD!