The Crisis No one is reporting

We all know about the 4 years of $1 trillion + deficits. We all know about the $5.8 trillion in new debt accumulated in under 4 years by President obama. We all know about the QE1, QE2, And now QE3. BUT, what has gone largely unreported is the fact that NO ONE is buying our DEBT anymore! For the last three years the Federal Reserve has bought our debt. They now hold more than 60% of it.

This is akin to your right hand loaning your left hand money. But, IT GETS WORSE. They are printing the money they are using to buy our debt. This means that they are creating from nothing, money which we have to give value, to buy our debt, to finance our spending binge. This is a house of cards built upon a house of smaller cards.

But, It gets even worse. The Fed sets interest rates. This means it prints money, buys our debt, and sets the rate that it will be paid upon that debt. Creating an asset class out of nothing.

But it gets worse. Because Congress has abdicated it's fiduciary responsibility, it has allowed the Fed to effectively replace the Treasury, the Interbank lending system, the Monetary system, and Congressional oversight and authority.

Ladies and Gentlemen We have created our own slavemasters while fashioning the very shackles with which they will bind us. THANK YOU President Obama, and Ben Bernanke. In another century they would be drawn and quartered.