...debt is the currency of slaves...Desertdave,I would be happy if all the money the Fed is buying assets with was at least backed by debt.I'm not sure that all those fiat dollars conjured up for QE and POMO are even traceable to issuance of actual prior Treasury obligations.From ground level, it seems that Ben et cie. are conjuring up currency that is not actually authorized dollar-for-dollar by the Treasury as part of the nation's obligations that fall under the debt limit.In fact, it seems that the Fed may have somehow come up with "money" to purchase assets (including mortgage bonds) that in total exceed the "debt limit" to which the Treasury is authorized to produce debt and the currency attributable to such debt.Only a CPA could really say, but I have a sneaking suspicion that the money the Fed has used to bid against bona fide market participants is not even legal tender under the "debt-as-currency" scheme that Congress has authorized and the Treasury is charged with executing lawfully.Of course, I could be wrong - and often am.;-)
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