Hard Assets Alliance IRA

Tag Archives: Treasury bonds

  • Blog

    How long can the party in stocks last?

    by Chris Martenson

    Wednesday, February 2, 2011, 4:23 PM

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    The headlines are screaming at the top of every financial media outlet tonight:  The Dow Closes Above 12,000 For the First Time in Two Years!

    What’s going on here?  Is the recovery well and truly underway?   And, if it is, why is the Fed dropping hints again that “QE3 may get discussed” at future Fed meetings, as Kansas City Fed President Thomas Hoenig said on Feb 1st?

    Given the raft of good economic news lately, one might be forgiven for wondering what the Fed has in mind here.  If everything is so economically rosy, why are they already dropping trial balloons about more Quantitative Easing?  What are they seeing that we are not seeing, that justifies more than $100 billion in thin air money each month, and why won’t they just tell us what it is? 

    Here’s how ChrisMartenson.com member dbworld put it earlier today:

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  • Blog

    The Shell Game – How the Federal Reserve is Monetizing Debt

    by Chris Martenson

    Tuesday, August 25, 2009, 2:44 PM

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    Below is the first part of a Martenson Report from a few weeks ago, previously available only to enrolled members but now available for free to everyone. 

    To read the full report, click this link:

    The Shell Game – How The Federal Reserve Is Monetizing Debt


    Sunday, August 2, 2009

    Executive Summary

    • The Federal Reserve and the federal government are attempting to “plug the gap” caused by a slowdown of private credit/debt creation.
    • Non-US demand for the dollar must remain high, or the dollar will fall.
    • Demand for US assets is in negative territory for 2009
    • The TIC report and Federal Reserve Custody Account are reviewed and compared
    • The Federal Reserve has effectively been monetizing US government debt by cleverly enabling foreign central banks to swap their Agency debt for Treasury debt.
    • The shell game that the Fed is currently playing obscures the fact that money is being printed out of thin air and used to buy US government debt.

    The Federal Reserve is monetizing US Treasury debt and is doing so openly, both through its $300 billion commitment to buy Treasuries and by engaging in a sleight of hand maneuver that would make a street hustler from Brooklyn blush. 

    This report will wade through some technical details in order to illuminate a complicated issue, but you should take the time to learn about this because it is essential to understanding what the future may hold. 

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