Read time 1.4 min.
Often the most innocuous sounding terms perversely hide a terrible and desperate meaning. Terms such as “collateral damage” or “the people’s republic of” are used to give a deceptively benign veil to the horror of certain actions and the death and misery which inevitably results. In reality, the veil is a death shroud for both those terms are synonyms for the reapers scythe. You can now add two other such terms to the long list of deceptions that governments use to hide the treason and betrayal they inflict upon their people, the first is “Monetizing Debt” and the second is “Quantitative Easing”
Sounds so inoffensive doesn’t it, even soothing, “Monetising Debt” why , how sweet and so endearing. You have debt, let’s just well, “monetize” it, what can be so bad about that? And “Quantitavie Easing?”… Easing and quantitative, sort of like “The Big Easy “. The terms evoke images of relaxation and relief in well, “quantity”. Who doesn’t want large quantities of “easing”?
Nothing could be further from the truth. Let’s start with “Monetizing Debt.” I am not sure who the heck came up with the term but the action it hides is enough to make a Hamburg banker blush! What “monetizing debt” means is that the government is buying it’s own issue of Treasury Bonds. Yes you read that correctly. The government is issuing promissory notes in the form of treasury bills and bonds on our behalf to finance it’s spending. Banks, mostly foreign and mostly Chinese, buy these bonds and we pay them interest and promise to give them the money back at maturity. So far it’s pretty straight forward , it is exactly how we get deeper and deeper into debt.
OK, now this is how we accelerate that process to ensure the destruction of our economy. What the FED does next is the “monetizing of debt.” They go out and buy back the same bonds, the same debt obligations, that they just sold! We actually buy back the same bonds that we sold to the Chinese last month! But how do we pay for this? Don’t be silly, why, we just sell them more bonds which we then go back and buy back next month and we issue more bonds . So now we have to not only issue bonds to finance our ever increasing debt but we have to issue even more debt to finance the buying back of our previous debt.
This is how we accelerate the amount of debt that we have to make absolutely sure that we completely destroy the economy, ensure that every one’s retirement money , 401K and IRAs end up worthless and how the FED paves the way for food riots, and Obama can declare marshall law. So yes the FED has to accelerate that because Obama only has two more years in his term and the easiest way to do that is trough “MONETIZING DEBT”
Not content with just accelerating our drive into oblivion, the FED is ready to shift into “hyper drive” with “Quantitative Easing”. That’s part two of this story and we’ll publish it tomorow.