While We Watch AIG, The Treasury Destroys The Dollar

The Federal Reserve is desperate to do something to keep the financial sector afloat and apparently China is no longer buying our debt.  So while the country watches the 24/7 news cycle on the AIG bonus smackdown, the Fed is going to buy more than $1 trillion in Treasury and mortgage-backed securities.  This will devalue our currency further and set up inflation. 

Analysts were also surprised to hear that the Fed will buy up to $300 billion in long-term Treasury securities over the next six months.  And also there are plans to buy another $750 billion in mortgage-related assets.  The Fed also has interest rates sitting at almost 0%.  We are set up for a financial meltdown.  A depression must surely be coming our way.

“In these circumstances, the Federal Reserve will employ all available tools to promote economic recovery and to preserve price stability,” the Federal Open Market Committee said in a statement.  Really?  Sure sound like it to me.

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