The Fed’s Contradiction

 

“The Fed committed Wednesday to purchase an additional $45 billion in long-term Treasury securities each month well into 2013, in addition to the $40 billion in mortgage assets it is already buying each month. At $85 billion a month, the Fed’s balance sheet will thus keep growing from its current $2.9 trillion, heading toward $4 trillion by the end of the year. Four years ago it was less than $1 trillion.”

And every one of those dollars is a +1 added to the national debt, *regardless of and in addition to government overspending*. The fed will, single handedly, saddle us with $3.06 trillion dollars of new debt, over the proposed 36 months, with this policy.

If the President’s pipe dream of $1.6 trillion in new revenue were realized, in 10 years, that would offset one year’s defict during his administration. This ensures that any new revenue generation is completely futile.

Wall Street Journal

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