[AgentR]

$this->bbcode_second_pass_quote('sameu', 'c')orrect me if I'm wrong, but this is naked printing, right?

[frankthetank]

Circle jerk? Is that normal FED protocol?

This is major...or so i would think...spend your worthless dollars while you can!

[Jotapay]

$this->bbcode_second_pass_quote('AgentR', '')$this->bbcode_second_pass_quote('sameu', 'c')orrect me if I'm wrong, but this is naked printing, right?

[AgentR]

$this->bbcode_second_pass_quote('frankthetank', 'T')his is major...or so i would think...spend your worthless dollars while you can!

[Tyler_JC]

The last step is the fact that the Fed is actually purchasing Treasuries with the intent of selling them at some later date to soak up the cash.

Naked printing would be buying the Treasuries and then burning them (never selling them).

The Fed has done some naked printing recently. When they bought a couple hundred billion dollars of mortgage debt that was not worth the money they paid for it, the premium was naked printing.

Fed spends $100 to buy an asset that can only be sold for $90. That extra $10 is new money that can never leave the system. AKA, unsterilized money.

The whole idea of the Fed buying assets is that at some later date they can sell them to get the cash back. If they can't sell them back for at least what they bought them for, the difference stays in the economy as "free" money.

[AgentR]

$this->bbcode_second_pass_quote('Jotapay', 'H')ow is it not naked printing? They fabricated money out of thin air to buy T-Bills, no?

[sameu]

$this->bbcode_second_pass_quote('Tyler_JC', 'N')aked printing would be buying the Treasuries and then burning them (never selling them).

[Jotapay]

$this->bbcode_second_pass_quote('', 'y')es, I agree
but why wouldn't they burn it, it's an IOU to yourself, why wouldn't you burn it? or in others words, what assures us, that they in fact will sell it again at some point later?

[Jotapay]

$this->bbcode_second_pass_quote('AgentR', '')$this->bbcode_second_pass_quote('Jotapay', 'H')ow is it not naked printing? They fabricated money out of thin air to buy T-Bills, no?

[smiley]

Big question is. Why does the FED assume that no one else will buy them?

What exactly did president Wen tell Clinton when she came asking for credit?

[Jotapay]

$this->bbcode_second_pass_quote('smiley', 'B')ig question is. Why does the FED assume that no one else will buy them?

[bencole]

I think it would be appropriate for the the federal reserve and the dept. of treasury to adopt a new common seal in light of recent events.

these should be changed:





I would suggest a design similar to this:

[ReverseEngineer]

$this->bbcode_second_pass_quote('smiley', 'B')ig question is. Why does the FED assume that no one else will buy them?

What exactly did president Wen tell Clinton when she came asking for credit?

[Daniel_Plainview]

$this->bbcode_second_pass_quote('Jotapay', '')$this->bbcode_second_pass_quote('smiley', 'B')ig question is. Why does the FED assume that no one else will buy them?

[seldom_seen]

$this->bbcode_second_pass_quote('DoomWarrior', 'W')ould you provide a link to such a story? I know that China has expressed trepidation as to the safety/security of further purchases of US treasuries, but I haven't read that the demand has been evaporating.

[heroineworshipper]

Funny that as soon as your government printed itself $300 billion, $300 billion was converted to gold. Another Obooboo victory. Nothing accomplished.

[seldom_seen]

If you read this story over at CNN, you'd think the Federal Reserve just saved the Earth and cured cancer:

$this->bbcode_second_pass_quote('', '[')b]Fed sparks rally on Wall Street

Major indexes extend gains after the U.S. central bank says it will buy Treasury bonds to increase liquidity.

"The Fed's actions to buy Treasurys is being hailed very positively," said Richard Sparks, senior equities analyst at Schaeffer's Investment Research. "We've had some upward momentum already over the last couple days," he added. "And the Fed's action adds fuel to that fire."

http://money.cnn.com/2009/03/18/markets ... 2009031815

[Sixstrings]

This is the Big Headline on Drudge now:

SUPER PUMP: $1 TRILLION CREATED OUT OF THIN AIR