Flash Point: We’re Not the Only Ones Thinking This …

Back in August, in Midnight Musing: Can the US End Up Owning Itself?, we asked the question if the Fed could end up owning all US debt. Were sure many have pondered this but today we get a published perspective via Zero Hedge: What Mitt Romney Also Said: A Glimpse Of The Endgame? Quoting Romney:

We’re living in this borrowed fantasy world, where the government keeps on borrowing money. You know, we borrow this extra trillion a year, we wonder who’s loaning us the trillion? The Chinese aren’t loaning us anymore. The Russians aren’t loaning it to us anymore. So who’s giving us the trillion? And the answer is we’re just making it up. The Federal Reserve is just taking it and saying, “Here, we’re giving it.” It’s just made up money, and this does not augur well for our economic future. You know, some of these things are complex enough it’s not easy for people to understand, but your point of saying, bankruptcy usually concentrates the mind.

As Zero hedge notes: Under Twist the fed has monetized 91% of all LT gross issuance. The transformational effects on its balance sheet we captured in Flash Point: The Limits of QE3. The Fed is increasingly acquiring more of all new debt issued. It’s buying the US.

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