by Greg Hunter, USAWatchdog:
The Federal Reserve finally pulled the trigger on the so-called “taper”– or did it? I am talking about cutting back the Fed’s bond buying program by $10 billion a month.
It is now $75 billion each and every month. Who is going to buy an extra $10 billion a month in debt? Are the banks going to take up the slack? The front page of USA Today says, “Fed: Era of Easy Money Ending.” Yet, on the front of the business page, Fed Chief Ben Bernanke is quoted as saying, “This is not intended to be a tightening . . . We’re trying here to get a high level of accommodation.” Which is it? Who knows what they are doing? My sources say the banks are putting trillions of dollars on interest rate swaps to hold down interest rates. The Fed wants you to think it’s being responsible, but it cannot stop printing money. Bernanke even said in a Q & A session that the Fed might increase the money printing. The latest housing and jobs numbers look like they are going to throw a cold bucket of water on the Fed’s phony “taper” move. And, just wait until those high Obama Care premiums suck billions of bucks out of the economy. And, let’s not forget the debt ceiling that will have to be raised in light of the new two year budget deal. That will be at least two trillion more added to our debt.
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