Funny Money

Does it bother anyone but me that the Fed is buying $300B of treasury bills?

#1. The Federal Reserve has a net worth of about $44B (as-of 3/11/09). Let's see if these numbers change in a few weeks? (see http://en.wikipedia.org/wiki/Federal_reserve#Budget)

#2. This should simply be outrageous to any thinking person. The Treasury issues bonds which are sold to fund government spending. The Fed, an autonomous quasi-private interest, which nevertheless controls money supply, buys those bonds.
A) What money is being used to purchase the t-bonds?
B) The taxpayers then have to pay back principal and interest to pay the bonds back, to the Fed -- and yet we're supposed to believe the money supply will somehow contract later on to absorb the excesses of today's decisions?

Is your head spinning yet?

I am unfortunately seeing too many things that make me in the "bear" camp rather than the bull camp. Make wise decisions about your money, job, and house today, as you will have to live with them for a long time. I will post tomorrow about why bad times are coming.

Regards,
Trond