Fed Chairman Bernanke Is Boxed into No-Win Corner—What Will He Say Tomorrow? | Coin Update News: "In recent weeks, I have seen multiple reports that the Federal Reserve has been purchasing as much at 85% of all long-term US Treasury debt issues. The reason that this percentage is so high is that other buyers are shying away from purchasing US dollar-denominated debt. Potential buyers are steering clear of the US dollar because, adjusted for the effects of inflation, the value of the US dollar is now at its lowest level since 1973, the year when the US government began to allow the value of the dollar to float. Further, the value of the US dollar is still falling."
The first time the United States government started borrowing from itself, it was discussed here. Does it make sense that if others around the world are souring on the idea of giving us their money for our debt, that we continue to take money from one pocket and put it into another? This is the last breath of an economy that has little other choice. The only choices offered are difficult and it would take more courage for the politicians than they actually have. Drastic cutbacks and some degree of tax increases are necessary. Neither of these are easy. There are only difficult choices ahead. If left alone, the nature of economics will one day take hold and it will not be pleasant.
