Buying our own debt and printing 1.45 trillion??

Gold $990 - there's that sell-off we talked about. :-) Now, to the horror show that is our economy...


Federal Reserve Accounts For 50% of Second Quarter Treasury Purchases -- This is pure desperation on the part of our government. We're buying our own debt?

Orders for durable goods drop unexpectedly – New York Times
"Termites in the attic": is it time to panic about America's soaring debt? – Yahoo! Finance
Desperately seeking an exit strategy. (Roubini says debt monetization and inflation "the path of least resistance") - In all honesty, there's just no way out now. The US lacks the unity and honesty to get out of the situation we're in. Corruption at all levels will be our undoing.

Lehman Brothers Revisited - Strong words from Peter Schiff: "If the current policies continue, the America we know – for which our forebears risked so much – will cease to exist. "

UK: Crude Price "Shock" Next Threat to Recovery - "Soaring energy prices could fuel inflation and derail economic recovery, one of the Bank of England's most senior policymakers warned yesterday."

UK: Markets in Government-Fueled Bubble Says Hedge Fund Manager
US Debt Crisis May Cause "Fall Of Rome" Scenario - “The bad news is at the end of a 10-year period we’re still not going to have fixed the problem,” Duncan said in an interview in Hong Kong yesterday. “Eventually it will lead to high rates of inflation well down the line and really destabilize things to the point where there may be irreparable damage. A kind of ‘Fall of Rome’ scenario."

Things are Getting Better? - Basically, the "recovery" that has been touted has only been for the elite bankers and a few corporate bigwigs. From the middle class on down, there has been no recovery. Unemployment continues to climb.

Thank The Fed for Your Lack of Purchasing Power (The Mogambo Guru)
US new home sales rise - This headline should really read like this: The People who still have some money left have bought into the positive spin put out by the mainstream media, and mistakenly believing that the housing market has bottomed, purchased a new home.




FROM A MARTIN WEISS NEWSLETTER:


It’s starting to look like the Fed’s going to need a skyscraper-full of new printing presses ...

In a statement released yesterday, the Federal Reserve said,

“To provide support to mortgage lending and housing markets, and to improve overall conditions in private credit markets, the Federal Reserve will purchase a total of $1.25 trillion of agency mortgage-backed securities and up to $200 billion of agency debt.”

That’s a total of $1.45 trillion! Where’s the Fed going to get the money? Simple: They’ll have to PRINT it — create it out of thin air!

Plus, even former Fed Chairman Alan Greenspan is beginning to panic about the dollar’s decline, warning that total U.S. private and public debt — now at 84% of GDP and still soaring — is “very dangerous” and threatens both long-term Treasuries and the dollar.