Pulse on the Marketplace – LMR Recap of February 2014
I always feel the Austrian Economic perspective is helpful as we all hear every day from the “talking heads” in the mainstream media all parroting the same responses. Of course for them, the objective is viewership, regardless of how accurate the information.
The Lara Murphy Report (LMR) is often where I go to secure a rational and logical response to what we are facing. From time to time we will bring you articles and segments we feel will help you sort out what is really going on. After all, if you know what is truly happening, you will know what to do!
As always, we love your thoughts and feedback, and whether you find the information of value.
We’re #46!!
HEY IT’S A FREE COUNTRY… ?
According to the group Reporters Without Borders, in 2013 the U.S. plummeted thirteen slots to #46 in a ranking of countries according to press freedom. It is particularly Orwellian for the “most transparent Administration in history” to lecture other governments about the need for openness, as it hunts down whistleblowers such as Edward Snowden.
Monetizing 2013 Debt
FED BIGGEST BUYER OF TREASURIES IN 2013
It’s official: This month it was reported that in 2013, the Federal Reserve was by far the biggest buyer of Treasury debt. During the year, the Treasury issued a net $759 billion in new securities to the public. Meanwhile, the Fed’s net holdings of Treasuries increased by $543 billion, 72 percent of the total.
We have made this point before, but it’s crucial to repeat: Back when the Bernanke Fed began its massive bond-buying spree, and many of us warned of currency debasement, the “responsible” analysts retorted that monetary policy decisions had nothing to do with fiscal policy; it was just a big coincidence that the Fed decided to start sopping up gobs of Treasuries just as the Feds decided the economy needed massive budget deficits as “stimulus.”
Only if world investors thought that the U.S. government was truly monetizing the debt would we be in trouble, they told us. Well, at what point will investors start seeing “monetization” rather than “skillful implementation of counter-cyclical open market operations”?
From: LMR, February 2014
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