Posted: 10/20/2010 5:49:12 PM EDT
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Is this:
(I failed at posting the graph. You will have to hit the link.) http://www.newyorkfed.org/markets/tot_operation_schedule.html The same as this: Monetize the Debt To convert government debt from interest-bearing securities into money. Although both the securities and the money are considered government debt, the latter can be used to purchase goods and services. Thus, monetizing the debt is considered an inflationary process and, although it may temporarily depress interest rates, it is likely to result in higher interest rates and lower bond prices in the long run. |
| There used to be a demand for dollars in the form of average people taking out home loans. The gov is attempting to step in and replace the absent demand for dollars in order to desperately fight deflation. The government is riding a horse (us) and the horse has gotten tired. The government has passed a law that says its against the law for horses to stop running at full speed. The horse has stopped and is now laying on its side panting out foaming blood and snot. The government is now in the process of whipping the horse to death. |
