Is the Fed acting behind the US stock market rally?

The Nation – After the economic bubble burst, the US government is now scrambling to clean up the mess. The US Federal Reserve has already committed $8.2 trillion to bail out the financial system, as well as corporate debts. The US’s annual gross domestic product is about $14.2 trillion. Sprott Asset Management, a Toronto-based hedge fund, has recently cast doubt that the US government is coming clean on its bail-out. In fiscal year 2009, the US added another $1.88 trillion to its public debt, which had to be financed by the US Treasury issuing securities. The foreign and international buyers purchased $697.5 billion of US treasuries; the Federal Reserve, which is pursuing an aggressive money printing policy, $286 billion; and the household sector $704 billion. But Sprott Asset suspects that something fishy is going on. For the household sector was loosely defined, and it does not seem that any parties, under the current economic conditions, have $704 billion to buy into US treasuries. It concluded that the real buyer behind the household sector was none other than the US Federal Reserve itself. Read Article

Ed – Sooner or later this second, debt fuelled, bubble will burst. And when it does the US economy and dollar will free-fall. Out of the chaos will be calls for the creation of a North American Union out of what is now NAFTA, and from that will arise the Amero to replace the now worthless dollar.

Tags: 2nd Great Depression, financial system, national debt, New World Order