Is the Federal Reserve Really Purchasing Over 60% of 2011's Fiscal Deficit? In a Word, uh... Yeah.
From Gonzalo Lira:
"The other day, in my post “The Lull Before the Storm”, I mentioned that for fiscal year 2011, the Federal Reserve would be purchasing over 60% of the Federal government deficit.
In other words, the Fed would be dancing the Monetization Waltz, just like Latin American countries used to back in the 1970’s: Proof positive that America is indeed a banana republic—only with nukes.
Mark Twain said it best: There are lies, damned lies, and statistics. If you want to deceive your audience, you source your numbers from some shifty salesman with an ideological ax to grind, gussy it up with percentage signs and charts and graphs, and thereby “prove” any damned foolishness you like.
But deceit in this context serves no purpose: It’s in all of our best interests to know exactly what is going on, in fiscal year 2011.