$85 Billion

This weekend's paper noted that the federal reserve is buying another $85 Billion in treasury bonds. They have been buying them at the rate of once per month for well over a year. I can't count that high, but do any of you wonder why they are doing this?

Our government has been selling bonds both domestically and internationally for many years, letting the market set the rates and prices. Suddenly and in concert with the administration, the fed is undercutting the market. They claim it is to accelerate growth and job creation, yet while the stock market is doing well, unemployment is still very high. No, don't pay any attention to the statistics on that subject. Remember Will Rogers, who once said there are lies, damn lies and statistics.

Unemployment is kept track of by benefit applications. If a person lost his/her job back in 2008 they are no longer counted, since they have already run out of benefits. Thousands that lost their jobs to cheap Asian labor, represent the uncounted. Perhaps they can be counted by trips to the food bank and food stamps.

Back to the non-recession we are in. According to the statisticians, (see damn lies) our Great Recession ended in 2008. Well, that was when the stock market recovered, mostly due to Obama throwing money at large industry, and doling out millions to individuals.

Something to remember here. This is our money being thrown at us. No, we haven't paid that money yet. That is for future generations to do. Another old quote, I think from Thomas Jefferson, said, "When the government finds out they can bribe the people with their own money, democracy is lost." That is paraphrased, but the intent Is clear.

Back to the lead paragraph. $85,000,000,000 per month for over a year. There are several things wrong with this formula including a massive inflation due soon, similar to 1980-1982. The most serious though is where is the federal reserve getting the money to spend on this program. The fed is not a taxing agency and has no real
income. If you haven't guessed yet, I'll tell you. They are just figuratively printing it. I say figuratively because they do  not print out $85 billion dollars in $100 bills each month. They merely go to their computers and send a message to the treasury that they now have that much on deposit at the central bank and oh by the way, please send the bonds to us.

This my friends is what the FBI calls a Ponzi Scheme, which if done by a citizen earns you many years in a federal penitentiary.

If in the next several elections we haven't changed our votes, we won't have to worry about Tea Party extremism, just the wackos we already have.