Has anyone heard this?

The Fed is printing money in order to buy the debt that the US government is creating in order to keep the currency inflated....

Unfortunately this is going to create a huge problem down the road. Eventually the US will run out of people to sell our debt to.... China has already said it doesn't want to buy US debt and neither do a lot of other places. So instead the Fed is buying up debt.... eventually no one will buy the debt and the curency will become so inflated that it will become worthless.

Ready to be bankrupt america?

They claim this will stimulate the economy.... but how will buying up debt with worthless currency save the economy? I just can't believe that we've been convinced that more spending will somehow solve our problems.... stop spending so much money and learn to use it efficiently in the future!

Geeogree do you have an article that can explain this a little more fully?

I agree that our government spending has been WAY out of control. I would like to blame the current administraion, but the truth is this problem outdates Obama. We haven't had smart fiscal policy for years. Barack must continue to spend ridiculous amounts of money if he is to deliver on any of his campaign promises and that will not help out financial situation.

http://www.google.ca/search?hl=en&q=fed+buying+treasuries&btnG=Google+Search&meta=&aq=0&oq=fed+buying+

read any of the links on there and it should give more info.

And Obama has 2 choices.... try and fulfill his campaign promises and bankrupt the country or salvage the country by getting spending under control.


Unfortunately Obama has this idea that more spending will eventually get spending under control. And not just spending.... but taking on huge amounts of debt in order to do it.

I wonder if anyone here has spent money on their credit cards and later on managed to end up better off because of it.... interest on the national debt once Obama is through with his term will be crippling.

And I agree, this isn't just Obama's fault.... Bush spent too much, Clinton spent too much, and Bush senior probably spent too much (although I don't remember back that far )

Thanks for the link.
You're right on Geeogree. Even going back to the highly regarded by the right Ronald Reagan, Reagan spent TONS of money of defense. Before his was Jimmy Carter who is regarded as one of the worst presidents, so it really has been a LONG time since we've had good fiscal policies.

Maybe one of you in left field can help explain this to me, but I don't see why a hard working American would be a fiscal liberal. Socially, I can understand, but fiscal conservatism just makes sense. Everything runs smoother and more efficiently when people do things for themselves instead of having the government doing things for them. Plus, lower taxes for everyone seems pretty hard to pass up, I would think.

yeah, but being socially liberal requires you to be fiscally liberal.... you have to pay for all those programs that you want....

Neither side is really fiscally conservative if you notice. The problem actually goes back at least to the Cold War in the 1950s and all the money that was spent on containing the communist threat... with the Korean and Vietnam Wars being the biggest hit. Big spending has helped us before, FDR did it well with the New Deal and we did recover. I am sure that the boom after WWII played a major part of course.

But yeah, "liberals" spend on social reform and "conservatives" spend on defense. Both give tax breaks, just to different groups, liberals to working class and conservatives to big businesses. Honestly, right now there is a need to spend some money but we do need to get it under control and fast. I am sure that Obama does not want to be spending this much money but I am also sure he wasn't counting on the economy tanking right before his being elected either.

I don't blame Obama for the problem. Like you said it's been a problem for at least the last 50-60 years with presidents spending more money than the country actually had. And it was for different reasons. But the simple fact is that Obama will double the national debt if everything he has proposed is passed and the money is spent. The budget deficit for this year alone is more than the 8 years under Bush. That is my major problem with Obama. You can't solve a debt problem with more debt..... it just doens't work.

Jesus D: it's not Obama's problem, I know, but it seems like some politicians are trying to MAKE it look like his fault by messing everything up.

They're making Monopoly money, here... It's like a game to them.

WHOA, Clinton spent too much? He brought our country from a deficit into a multi-billion dollar surplus. I doubt his spending was a problem. What I think needs to happen, is that the U.S. needs to spend money in jobs where the products are exported. Our problem is that we spend more money on imported goods than we make on exported goods. If we fix that, we can start recovering. A good start would be not outsourcing jobs for cheap labor

I think Clinton would have spent a lot more if he didn't have a republican congress holding him in check. Doesn't matter though, we are where we are.

We're always going to have low times, so it'll get better around next year I hope.