(NaturalNews) For those who haven't been paying much attention to the financial situation recently, the U.S. Treasury has just entered what I call the "final blowout phase" of debt desperation. As
FT.com reports, the Treasury is set to auction off $67 billion in debt next week, to be followed by increasingly frequent auctions of yet more debt, to the tune of unknown billions (or even trillions) each year.
The question is: Who is stupid enough to actually buy a 30-year debt note from the U.S. Treasury? The hilarious answer is: The
Federal Reserve, of course!
Yes, the Fed will begin creating yet more
money out of thin air in order to buy the IOUs of the U.S. Treasury and create the appearance that somebody is still buying U.S.
debt.
At this point, it should be apparent to anyone with functioning brainwaves that the only reason the Fed has to step in and buy the debt is because
nobody else is willing to pay for it! If you're a rich oil sheik in the Middle East, do you want to trade your hard-won wealth for pieces of
paper with IOUs written on them from a nation that has no financial future and can't even find buyers for its debt anymore?
Of course not. Especially not for a measly 2.9% interest rate. The number of international suckers willing to pony up
cash in exchange for empty promises from a bankrupt country is dwindling fast. So the only remaining buyer is the private company
running the counterfeiting machines: The Federal Reserve.
The upshot of all this, by the way, is that the Fed's creation of new money to buy Treasury debt will result in the rampant acceleration of hyperinflation of the U.S. currency. The layers of madness in all this simply defy explanation. The financial pros are taking their money and exiting the U.S. banking system faster than a room full of Senators running away from responsibility.
There are now only two lawmakers in Washington who seem willing to stand up to the Fed: Rep. Ron Paul and Rep. Dennis Kucinich. (Neither are Senators, by the way.)
Enjoy the puppet show... ouch!
The Fed buying debt from the Treasury through the use of made-up money is something of a circus. Or, perhaps, a puppet show. And that puppet show goes something like this: I have a puppet on my right hand named Treasury, and it talks to a puppet on my left hand named Fed. My right-hand puppet (Treasury) says it needs some money, so it writes up a collection of IOUs on some scrap paper. My left-hand puppet (Fed) prints up a bunch of green paper money and trades them for the IOUs.
My right-hand puppet then hands that cash to rich, elite bankers who run Wall Street while my left-hand puppet prints up yet more cash to replace the cash it used to buy the IOUs. When they're done with all that, both puppets plunge deep into my pockets and grab me by the balls because, of course, I'm a taxpayer, and that's who ultimately gets squeezed in this racket.
Let me be very, very clear to everyone bright enough to get this. I want to be CRYSTAL clear and on the record with this: Anyone left holding U.S. dollars when the music stops is going to lose most of the value those dollars once represented. In time, we will see a mass exodus from the U.S. dollar take place, and when that scenario unfolds, only about 1% - 2% of the people will be able to cash out or convert their dollars into something representing real value. The remaining 98% (or so) could lose everything. That's because the U.S. dollar is a house of cards based on vanishing echoes of lingering faith in the solvency of the now-bankrupt U.S. government (that's still fighting and funding two wars).
It's all just paper, after all... truly just pieces of paper with larger and large numbers printed on them. That paper is backed by the "full faith and credit" of a nation that's so far beyond bankruptcy that its political leaders can't even utter the phrase "national debt" anymore without being chased off stage by angry voters.
It won't be long before the world realizes just how fragile the whole racket really is. Remember this: What
Madoff was arrested for (the Ponzi scheme), the Fed has been pulling off for nearly a century! The U.S. Treasury / Federal Reserve debt scam is the greatest Ponzi scheme this world has ever witnessed. The only difference is that while Madoff screwed the rich, the Fed is screwing everybody.
A banker walks into a bar...
Here's a new twist on an old joke you might find funny:
Three rich Wall Street banksters and a Federal Reserve official are flying over New York City in a private jet bought with bailout money. The first banker says, "Why don't we throw a thousand dollars out the window and help somebody?"
The second banker says, "Why don't we throw a
million dollars out the window and help even more people?"
The third banker says, "Why don't we throw a
trillion dollars out the window and help everybody?"
The Federal Reserve official pauses, looks at the bankers and says, "Again?"
And finally, the (Libertarian) co-pilot turns around and says, "Why don't we throw you guys out the window and just help ourselves?"
Sources for this story include FT.com:
http://www.ft.com/cms/s/0/bdf4ee70-f2e4-11dd-abe6-0000779fd2ac.html
About the author: Mike Adams is a natural health researcher, author and award-winning journalist with a mission to teach personal and planetary health to the public He has authored more than 1,800 articles and dozens of reports, guides and interviews on natural health topics, impacting the lives of millions of readers around the world who are experiencing phenomenal health benefits from reading his articles. Adams is an independent journalist with strong ethics who does not get paid to write articles about any product or company. In 2010, Adams co-founded NaturalNews.TV, a natural health video sharing site that has now grown in popularity. He also launched an online retailer of environmentally-friendly products (BetterLifeGoods.com) and uses a portion of its profits to help fund non-profit endeavors. He's also a successful software entrepreneur, having founded a well known email marketing software company whose technology currently powers the NaturalNews email newsletters. Adams also serves as the executive director of the Consumer Wellness Center, a non-profit consumer protection group, and pursues hobbies such as martial arts, Capoeira, nature macrophotography and organic gardening. Known as the 'Health Ranger,' Adams' personal health statistics and mission statements are located at www.HealthRanger.org
Have comments on this article? Post them here:
people have commented on this article.
Thursday, February 05, 2009
Email this article to a friend
Share this article on: 
Now Available from 
