It's Official - The Fed Is Now Buying European Government Bonds

[mamboni]

It's Official - The Fed Is Now Buying European Government Bonds


http://www.zerohedge.com/sites/defau.../picture-5.jpg
Submitted by Tyler Durden on 03/27/2012 11:42 -0400

• European Central Bank
• Greece
• International Monetary Fund
• Sovereign Debt
• William Dudley

As if the 'risk-less' dollar-swaps the Fed has extended to any and every major central bank were not enough, William Dudley just unashamedly admitted that the Fed now holds 'a very small amount of European Sovereign Debt'. Explaining this position, as Bloomberg notes:

• *DUDLEY: FED HOLDS OVERSEAS SOVEREIGN DEBT TO MANAGE RESERVES
• *DUDLEY: HIGH BAR FOR ADDITIONAL PURCHASES OF EUROPE DEBT

Dudley, testifying to a House panel, noted that he doesn't see more efforts by the Fed to buffer the US from Europe's tempests and believes European banks are deleveraging in an orderly manner. So not only is the US taxpayer bailing out Europe via the IMF (as we noted here a week ago using Greece as an intermediary) and the Fed is providing limitless USD swap lines but now we join the ECB in monetizing European government bonds - something we warned might happen back in December 2010. As for being a small amount - wasn't MF Global's holding relatively small too? And aren't we getting a little full from all this buying?

Mamboni comments: This is illegal. But being that the rule of law died awhile ago it's a pointless objection. Gold is down today, which is laughable. Nothing will be done about this. Anyone who is still unconvinced that the endgame is debt monetization and currency devaluation to infinity is braindead and deserving of the nearest tar pit. For the rest of us, there is physical gold (Turkey loves it!) and silver.

[jimswift]

So, that story I read on here last week about the Fed turning over all of it's assets to the UN sounds more interesting with this type of scenario.

Is this how world government comes to be?

[osoab]

Has Ben ever seen a bond he didn't want to buy?

[mamboni]

So, that story I read on here last week about the Fed turning over all of it's assets to the UN sounds more interesting with this type of scenario.

Is this how world government comes to be?

Sure: I'm the IMF. The FED bought your sovereign debt with money out of thin air and gave it to me. So I own your ass. Give me your freedom, your property, your labor, your inventions, your monuments, your heritage, your country and your identity.

It's all such an obscene scam and lie. Only the Icelanders had the balls to kick the fucking bankers out with their funny money and fraud bonds. Let's hope the Greeks and the rest of Europe follow suit. All these international bankers deserve to be degorged and forced to live in abject poverty sucking on bugs for the rest of their miserable lives.

[Golden]

Why Iceland won't join the EU

http://www.youtube.com/watch?v=669cmmGeui8

[Neuro]

Why don't they state how much they bought bonds for? If I bought something really expensive, and didn't want to tell my wife how much it costed directly, I would mumble "notsomuch", followed by halfscreaming "SO HOW WAS YOUR DAY, HONEY!"... Not that I ever would do such a thing in real life, but hypothetically speaking...


... Actually the first times I bought Silver in 2007 it was like that...