Wednesday, October 14, 2009

Besides The Fed, Nobody Is Buying Agency Debt

Foreign investors no longer buying federal-agency debt. Federal Reserve, with money created from nothing, is buying all of it plus other debt as well. More inflation and Dollar decline is inevitable.

Where would we be without the Fed and its printing press? There's been a lot of debate about the appetite of foreign investors of our debt -- Treasury auctions continue to be strong, even as noises emanate from overseas about wanting to dump the dollar.
But here's a stark fact, via the Council on Foreign Relations: Only the Fed is buying agency debt. Foreign buyers, who once consumed it voraciously, have been net sellers so far this year.

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