Three Horrifying Facts About the US Debt “Situation”

Phoenix Capital Research

Zeero Hedge
October 7, 2010

Since too often financial articles consist of some stooge blathering on and on with opinions instead of facts, I thought today we’d simply focus on some FACTS about our current financial system which few if any want to acknowledge.

#1: The US Fed is now the second largest owner of US Treasuries.

That’s right, this week we overtook Japan, leaving China as the only country with greater ownership of US Debt. And we’re printing money to buy it. Setting aside the fact that this is abject lunacy, this policy is trashing our currency which has fallen 13% since June… as in four months ago. Want an explanation for why stocks, commodities, and Gold are exploding higher? Here it is.

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Dollar Tumbles as Fed Prepares to Print More Money


 

Reuters
October 7, 2010

 

The dollar’s downtrend gathered pace on Thursday as it slid to a 15-year low versus the Japanese yen and an all-time low against the Swiss franc on the prospect of more money-printing by the U.S. Federal Reserve.

The Australian dollar surged to a 27-year high against its U.S. counterpart after surprisingly strong jobs data revived talk of a Reserve Bank rate hike, while broad dollar selling pushed the euro to an eight-month high.

The Bank of England and the European Central Bank both stood pat on their monetary policies on Thursday, underlining the possibility that the Fed may lead the way into more aggressive quantitative easing, which is seen knocking the dollar lower.

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