The Fed to buy long-term US government debt

[verticon]

Euronews announces: "The US central bank said it would be prepared to buy long-term US government debt if that would help improve conditions in financial markets."

http://www.euronews.net/en/article/28/01/2...o-help-markets/

By US central bank they mean The Federal Reserve Bank.

I just don't get it ! So now they don't just make money out of thin air and lend it to the government with interest, but (in disguise as the US central bank ) they start buying govn't debts with those non-existing money.

Could someone explain it ?

[drew hempel]

To answer your question I turned to the genius economics professor Ravi Batra. He points out that Greenspan was against rises in real wages or purchasing power of workers and INSTEAD used debt as FALSE DEMAND. It's a pretty fascinating way of looking at the supply/demand model -- and of course that's what the "U.S. Central Bank" continues to want to do.

http://www.ravibatra.com/globalfinancialcrisis.htm

[icosaface]

You are over thinking this verticon, you already explained it yourself. You have to remember that you are dealing with con artists, they told you that they are carrying on business as usual but they are implying that they are doing something new. They aren't, the pea is in their pocket, there is nothing under the shells.