It was my less than diplomatic way of explaining what our country - through the Federal Reserve - is doing to itself as we purchase our own debt. As I explained then:
The Federal Reserve is going to spend about $600 billion to purchase Treasury notes (our debt), which will help keep our unfunded obligations (war, corporate bailouts, tax cuts for the rich, etc.) going. Then, for good measure, the Fed will use it's financial muscle to boost the stock market's performance. They're doing this because, you know, we didn't use enough taxpayer money for Wall Street's Bailout in Perpetuity Program, which we made official in 2008.
On the good side it looks like the press is finally catching on to the shenanigans being pulled by Wall Street's boot-licking servants over at the Federal Reserve (who seem to think it's their job to guarantee Wall Street's profits).
Check out these headlines, compiled by Money and Markets Mike Larson, from the past week ...
"Fresh Attack on Fed Move; GOP Economists, Lawmakers Call for Abandoning $600 Billion Bond Purchase" -- Wall Street Journal, November 15
"Under Attack, Fed Officials Defend Buying of Bonds" -- New York Times, November 16
"Fed officials defend $600bn stimulus" -- Financial Times, November 16
"Bond Market Defies Fed; Interest Rates Rise Despite Launch of Treasury Buying as Investors Take Profits" -- Wall Street Journal, November 16
I won't get into what's happening with long-term treasury notes, the value of the dollar, or other details that explain how this hurts our larger economy and the American consumer (for now). But it's clear that the Federal Reserve has gone farther than any boot-licking agency should when it comes to serving Wall Street's interests.
[Not that it needs to be said, but replace "Wilson" with "Bernanke"]
However, I think it's important to note one thing. By finally bringing attention to the Fed's "snake-eats-own-tail" policies, this could be the medias first step in finally calling out the Federal Reserve for doing stuff no central bank should be doing. You know, like bailing out specific industries, propping up the stock market, subsidizing profits, and irresponsibly putting U.S. taxpayers on the hook for trillions in corporate credits and guarantees.
Then again, if history is any indicator, I'm not going to hold out much hope that our media market watchers suddenly understand how important it is that the Federal Reserve does what any central worth it's salt is supposed to do - guard the integrity of it's currency. Seriously, why did it take the 4th Estate almost two weeks to discuss what I posted on November 4th?
Still, it's a start.