Flash Editorials March 10, 2012
By Russell D. Longcore
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The Nation III: The Federal Reserve now owns more United States Treasury bonds (debt) than China. Think about what a mega-Ponzi scheme this is. The very entity that prints greenback dollars…creating money from paper and ink…prints up a few hundred billion and hands them to the US Treasury to buy debt, thereby propping up the government. It’s the highest form of counterfeiting ever witnessed in human history. The tragic part of this story is that the Fed cannot stop printing and buying. If other nations around the planet want to dump DC debt, the Fed will be forced to buy it so that the bond market does not crash. Get ready for hyperinflation, ladies and gentlemen. It’s coming to a wallet near you.
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Paper money always fails eventually.
Who gets hurt? The poor, those on fixed incomes, the very young, and the very old.
Who makes out? The elite, the mobile, those with real skills / real capital, and those who “saved” in metals.
That’s the 64k$ question!
We have to think it comes with a “tipping point” event (i.e., trouble in the Middle East; OPEC shifts to sell oil for gold; China further “diversifies” out of US debt).
We’re like the old sailors approaching the edge of the earth. Who knows what lies over the horizon?
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