Fed buying bonds?!

[Dom2012]

Am i correct in reading that the fed is the biggest buyer of US government securities .
? if so, this makes the federal reserve system even more mental than i first thought!

so it goes. ..

fed creates money +interest and gives it to the government (well buys bits of paper from them lol)
this expands the money supply and the debt of the nation. they try to sell the debt in the form of bonds and t-bills, and the fed buys it back? ! this seems utter madness to me.

[Ivan]

lol, thats because its madness. I love the part when ron paul showed silver coin and told ben that the fed will self destroy. Ron Paul is the man.

[Dudesome]

Actually if u think about it the whole idea is genius. Just think how genius this scam has to be to have worked well over 39 years.