Skip to comments.Demand for U.S. Debt is Not Limitless
Posted on 04/02/2012 9:22:58 PM PDT by RedMominBlueState
The conventional wisdom that nearly infinite demand exists for U.S. Treasury debt is flawed and especially dangerous at a time of record U.S. sovereign debt issuance.
The recently released Federal Reserve Flow of Funds report for all of 2011 reveals that Federal Reserve purchases of Treasury debt mask reduced demand for U.S. sovereign obligations. Last year the Fed purchased a stunning 61% of the total net Treasury issuance, up from negligible amounts prior to the 2008 financial crisis. This not only creates the false appearance of limitless demand for U.S. debt but also blunts any sense of urgency to reduce supersized budget deficits...
(Excerpt) Read more at online.wsj.com ...
But Obama bucks are so hip!
This is proof that the Federal Reserve is the cornerstone of Progressive Government.
Without it, you could not have deficit spending, unfunded social programs, long-term interest rates at zero, nor could you even have a debate about a monster like Obamacare.
No underestimating the attempted leveraging of Phony-Care, as an attempt to shackle-steal this deficit Federal Labor Camp style.