Comment: Fed is buying Govt Debt, most likely last step for the US $

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Fed is buying Govt Debt, most likely last step for the US $

This move is to self purchase treasuries, US Govt Debt., today there is a slow up of foriegn countries to buy our debt. Asia in particular is now feeling the risk, that we will not pay back...so the Fed "prints more dollars" and puts this debt on their balance sheet. This devalues the US dollar. Putting inflationary pressure on US economy.

Meanwhile Gold and Silver are traditionally a safe haven to protect your net worth, but the Fed is also "naked shorting" Gold prices to keep Gold < 1750 or Silver <35. They do this by selling Gold and Silver it does not really have in stock, and covering these losses with more printed US dollars. As we know the Fed can't really go broke, they simply print more paper. Again pressure for inflation.

So where once China, Japan and So. Korea were once buying our debt, today's worse news is that we the "Tax Paying Units" are buying the debt by Fed Reserve putting it on it's books.

M1 is no longer used, since the Govt. tries to hide this reality, use the current in use index is MZM. You can see US foriegn reserves on Gold are now ZERO...apparently US is hanging by a thread.

http://research.stlouisfed.org/fred2/series/BOPOGLD

I give the dollar 12-18 more months tops. A good video...

http://www.youtube.com/watch?v=iGujjO_Za2c

"This isn't what the govern meant"

"Win the crowd and you will win your freedom"