The recently released Federal Reserve Flow of Funds report for all of 2011 reveals that Federal Reserve purchases of US Treasury debt mask reduced demand for U.S. sovereign obligations.
Did you UNDERSTAND that?
No ONE is willing to risk buying US Treasuries.
Last year the Fed purchased a stunning 61% of the total net Treasury issuance.
That figure is up from negligible amounts prior to the 2008 financial crisis.
This smoke and mirrors sleight of hand creates the FALSE appearance of limitless demand for U.S. sovereign debt.
The ILLUSION of wealth for a bankrupt country.
This action also forestalls the absolute urgent need to immediately reduce the ever ballooning leviathan US Federal budget deficits.
A bandage poorly constructed and deviously misapplied portends a premature avoidable death.
Robert D Anding III
R.I.P. United States 1776-2012?