First a look at the FED BS. Here we have a slow decrease from peak. Hopefully this will be a trend. Yet as Ron Paul notes the forced low interest rates frankly mean those elderly on fixed incomes are the ones being taxed by the large banks to help support their income. It is frankly a total disregard of those who were wise and saved. They now have 0% interest and thus must deplete their capital. A true free market rate would be more likely 4.5-5.5%. That would adjust all elements to reasonable levels. It would drive up US Government Debt costs as well. Thus we have a collusion of the FED and the current Administration living off the backs of the retired and furthermore now hitting their Medicare to the tune of $500B.
The FED's collection of US Treasuries has declined somewhat, a good trend, but one suspects a temporary one. It is a result of everyone else being worse. Thus a market for US Treasuries.
US Debt continues unabated. It well exceeds GDP and there appears to be no limit.
Finally I look at M2 from time to time and there has been volatility but now we see a flattening. Clearly the volatility will still be there but M2 shows a good 4-5% inflation, missing in the FEDs artificial control.
It is a shame that the old folks do not understand what is being done to them. The children will be loaded with long term debt unless we become Argentina and the older folks will just eat away principal. This is truly a third world governing milieu.
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