The Shell Game - How the Federal Reserve is Monetizing Debt

[Acrylicist]

Every ξ that has been created is accounted for in the Groups messages--
a very different situation than what we see with the US Federal
Reserve. Granted, we're not automated yet, but we haven't had the
need for automation yet. When we get to about 50 members, we'll
automate--so if you want to see that happen for the use of ξ, get your
friends to join and demonstrate it with public transactions. ~A.

http://www.chrismartenson.com/blog/shell-game-how-federal-reserve-monetizing-debt/25806

Executive Summary

* The Federal Reserve and the federal government are attempting to
"plug the gap" caused by a slowdown of private credit/debt creation.
* Non-US demand for the dollar must remain high, or the dollar
will fall.
* Demand for US assets is in negative territory for 2009
* The TIC report and Federal Reserve Custody Account are reviewed
and compared
* The Federal Reserve has effectively been monetizing US
government debt by cleverly enabling foreign central banks to swap
their Agency debt for Treasury debt.
* The shell game that the Fed is currently playing obscures the
fact that money is being printed out of thin air and used to buy US
government debt.

The Federal Reserve is monetizing US Treasury debt and is doing so
openly, both through its $300 billion commitment to buy Treasuries and
by engaging in a sleight of hand maneuver that would make a street
hustler from Brooklyn blush.

This report will wade through some technical details in order to
illuminate a complicated issue, but you should take the time to learn
about this because it is essential to understanding what the future
may hold.