Posted on 08/06/2009 9:28:50 PM PDT by dollarbull
In concert with the claims I made in the prior Martenson Insider post, The Fed bought $7 billion in Treasuries today and even more yesterday.
This is at the upper end of their recent range of already exceptional purchasing activity.
If things are so rosy that every single dip is being bought in the stock market with a vengeance, I wonder why these printing operations are really necessary?
This $14 billion plus buying activity by the Fed represents fresh money created out of this air that was exchanged for the sovereign debt of the US. However, since the Fed has, for all practical purposes, never undone its permanent operations (hey, that's why they are called "POMOs") we can consider these additions of money as good as permanent themselves.
(Excerpt) Read more at chrismartenson.com ...
We’re crossing the fiat-money-end-game event horizon here.
Fiat money is a confidence game, and it can and does go “poof” once the light bulb goes on for joe six pack.
Got GOLD?
So what are some of the end game scenarios? They are not going to be pretty.
Good post both zero hedge and the market ticker referred to that.
Did you see this?
http://market-ticker.denninger.net/archives/1305-Monetization-And-Bernanke-Perjury.html
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