Saturday 15March2014 - What Next?

From Richard Russell newsletter.

“The US is now actually borrowing to pay off the interest on its huge and growing debt.  The Treasury continually issues bonds.  But who will buy them?  Can you believe it, the US is reduced to actually buying its own debt via the Federal Reserve.  What does the Fed buy our debt with?  It buys our own debt with money that it conjures up out of thin air by means of a bookkeeping entry.  The Fed has been doing this for years and the Fed's basket of bonds is now over $4 trillion dollars worth of assorted bonds."