Friday, October 14, 2011

Fed becomes primary purchases of US debt as foreign holders dump treasuries

The ramifications of Congress's recent censure of China for currency manipulation may be coming home to roost for the US Treasury.  As the primary money printer in the country issues its current bond report, a staggering $74 billion in US holding have been dumped by foreign interests in just the past 6 weeks.

as soon as the broader population understands what has transpired, concerns about the reserve status of the greenback will start to resurface, precisely as many have been warning. And what has happened is that in six consecutive weeks, foreigners have sold $74 billion, or more government bonds in a sequential period of time than ever before. - Zerohedge

So now the Fed will continue to grow as the primary holder of US debt.  It only goes to show you the warnings given by our founding fathers.

Thomas Jefferson was concise in his early warning to the American nation, "If the American people ever allow private banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all their property until their children will wake up homeless on the continent their fathers conquered."
How many of this generation are now homeless, jobless, and without rights to property thanks primarily to the central bank known as the Federal Reserve.


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