June 30, 2011, remember that date.
The Fed’s QE2, quantitative easing II, the printing press have been busy printing billons in greenbacks. In recent months, the Fed bought $600 billion in treasury bonds, that’s unsecured government debt if you did not know.
This follows QE1 that ran from March 2009 to March 2010 and consisted of $1.75 Trillion purchases of treasury bonds, government issued debt.
The fed’s debt is 400% higher than the GDP. The printing press has kept the economy propped up by buying treasury bonds, not the GDP. No denying it, no matter how much spin the government puts on it.
What is going to happen when and if the government stops printing money? Who knows, America has never been in such danger of default since the Civil War.
Some suggest a temporary support of the dollar, which would hurt commodities sending most investors and speculators into cash and bonds as the false appearance of goods costing less would set in.
If the debt limit is not extended this would cause a default in the treasury bonds. Now how will the economy survive, by the lies and deceit of the government for the last few years? The US dollar will no longer be the worlds currency.
The piper is nearing the door. United States debt holders will have only one reaction and that is the knowledge they hold a debt that will never be paid.
By the way, this is similar to what recently happened to the countries economies that failed.
Can’t happen in America you say. Whoever thought possible investments banks failing, GM going bankrupt, Fannie May - Freddie Mac liquidation, AIG failure, hundreds of banks being seized, million of homes in foreclosure and the true unemployment rate over 20%?
Remember that June 30, 2011 the Fed will stop buying Treasury Bonds. The economy will have to stand without the government lies and a 400% deficit to the GDP indicator.
More evidence of looming disaster is one of the wealthiest and proven investment entities, the University of Texas endowment fund buying 1 billion in physical gold bars and Mexico buying 100 tons of gold with US dollars.
Remember whose policies have landed America where we are.
So how do you like the “change” that now threatens the American way of life?