Pat C

How The Federal Reserve Is Monetizing Debt

I re-read your article (it really is good) and I didn't consider the international implications since I was more focused on the Fed's Balance Sheet which does force the Ponzi scheme to stop for a moment in time. It looks like the Fed not only bailed out US Banks of all this crappy paper but also bailed out International Banks as well. Even if we exclude our horrible deficit and our international brethren's need to prop up the dollar and their exports, sooner or later someone has to take the loss - right?
I mean somebody's going to get pissed off and not going to play ball anymore and then the game is over.

How The Federal Reserve Is Monetizing Debt

Thank you, thank you for confirming my identical but rough conclusions. I came at it from an accountant/auditor point of view. I looked at the Fed's balance sheet and was wondering what value all this "stuff" (GSE, MBS etc. etc) was worth and how liquid it was in the event the Fed actually has to sell these assets to pull back all the cheap money they created for the banksters which is now being passed on to their investment bank casino - what a deal!).

What I would like to know is:

At what value did they buy all this "stuff"?
Was this "stuff" discounted?
Are there any buy-back provisions for this "stuff"?
Is there a valuation process in place for determining its fair value and how liquid it is (Like do you have any Internal Controls)?

I got a bad feeling about all this "stuff".