MASSIVE Inflation Is Coming

Don’t expect this to be solved before the election.  For that matter, don’t expect it to be solved after the election.

The Federal Reserve is propping up the entire U.S. economy by buying 61 percent of the government debt issued by the Treasury Department, a trend that cannot last, Lawrence Goodman, a former Treasury official and current president of the Center for Financial Stability, writes in a Wall Street Journal opinion article published Wednesday.

“Last year the Fed purchased a stunning 61 percent of the total net Treasury issuance, up from negligible amounts prior to the 2008 financial crisis,” Goodman writes.

Goodman also warns that U.S. economy and markets are “at risk for a sharp correction” if conditions aren’t “normalized.”

“This not only creates the false appearance of limitless demand for U.S. debt but also blunts any sense of urgency to reduce supersized budget deficits.”


  1. One of the 99% says:

    Can’t the Fed just keep printing money indefinitely and continue to buy US debt?

  2. Yes, they can continue printing and buying, but the issue is the value of what they print.
    The aware know that the value of what the Fed prints (or creates electronically) is going down. That’s why, for example, the BRICS are going off the dollar reservation, and demand for physical precious metals continues to increase.

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