DEBT MONETIZATION: Fed Emergency Loans, Banks Buy Treasuries, Banks Post Treasuries As Collateral, Fed Emergency Loans, Banks Buy Treasuries, And So On, And So Forth

Are the US government and the Fed engaged in some good old-fashioned money printing? Because it sure looks that way…

Or am I missing something here?

Because, well, there’s the Exchange Stabilization Fund:

The ESF can do anything it wants, to any market, at any time, and for any reason.

Says so right there.

OK, “Half Dollar, you’ve fallen off your rocker again, that doesn’t say they can work with the New York Fed or anything like that!”.

You’re right!

About the New York Fed, that is.

Because to see that, you would have to click on the “Finances and Operations” page under the Exchange Stabilization Fund¬†at

So, yeah, the NY Fed and the US government have been sleeping in that bed since 1934.

OK, “Hey Half Dollar, that’s under “Purchase or Sale of Foreign Currency” and not under “Purchase or Sale of US Treasuries” you big dufus!”.

If you think the NY Fed can’t make the debt monetization scheme happen, then I wish you well in the economic collapse when economic misery and financial ruin are unleashed on America.

Many will not survive it.

Few will endure it.

Even less will thrive in it.

And just who exactly is executing these “what-the-heck-is-going-on-and-why-can’t-anybody-figure-it-out” Repo operations?


The NY Fed:

It’s being done in their active suppression of interest rates, too, because, you know – free markets are not allowed here!


Probably nothing.

Stack accordingly…

– Half Dollar


About the Author

U.S. Army Iraq War Combat Veteran Paul “Half Dollar” Eberhart has an AS in Information Systems and Security from Western Technical College and a BA in Spanish from The University of North Carolina at Chapel Hill. Paul dived into gold & silver in 2009 as a natural progression from the prepper community. He is self-studied in the field of economics, an active amateur trader, and a Silver Bug at heart.

Paul’s free book Gold & Silver 2.0: Tales from the Crypto can be found in the usual places like Amazon, Apple iBooks & Google Play, or online at Paul’s Twitter is @Paul_Eberhart.