The next time you hear propaganda from Fed officials or the financial MSM that the Fed will end QE by the end of 2013, please recall this startling statistic: thus far in 2013, the Fed has increased its Treasury bond holdings by $51.1 billion, while the official US debt has increased by only $47.2 billion over the same period.
This confirms with startling clarity that the Federal Reserve is the ONLY remaining purchaser of US debt in size, and that the Fed must not only take up all of the newly issued US debt, but it must also absorb the maturing treasury bonds coming due.
QE is going to INFINITY…AND BEYOND… and will continue until one of three events occur:
1. Gold revaluation (the final deflation-fighting tool in Bernanke’s toolbox)
2. Dollar devaluation (essentially #1 just announced in dollar terms) such as Venezuela announced Friday
3. Hyperinflation of the dollar & complete systemic collapse.
Fed Has Bought More U.S. Gov’t Debt This Year Than Treasury Has Issued
(CNSNews.com) – So far this calendar year, the Federal Reserve has bought up more U.S. government debt than the U.S. Treasury has issued.
On Dec. 31, the total debt of the U.S. government was $16.4327 trillion and then-Treasury Secretary Tim Geithner announced that the government had hit what was then the legal debt limit. Last week, however, Congress enacted a law to suspend the federal government debt limit until May 18, 2013, and allow the administration to resume increasing the debt.
By the close of business on Wednesday, Feb. 6, according to the U.S. Treasury, the total federal debt had climbed to $16.4799 trillion—an increase of $47.2 billion for the calendar year.
At the close of business on Jan. 2, the Federal Reserve had owned $1.661 trillion in U.S. Treasury securities. By the close of business on Feb. 6, it owned $1.7172 trillion—an increase of $51.1 billion for the calendar year.
Thus, the Federal Reserve’s purchases of U.S. government debt in this calendar year have exceeded the Treasury’s net debt issues by about $3.9 billion.