The following is a regurgitated post found on Zero Hedge. Therein lays a step by step process of how the Federal Reserve is indirectly buying US Treasuries. This ongoing process is what has led interest rates to remain at such low levels. It is also why small business is not getting a piece of the pie. The banks are swallowing all the public bailout money we all work so hard to earn. If you are not outraged by this you just aren't paying enough attention.
Let me say it again in case you skimmed the previous paragraph. The bailout money that has come from our tax dollars has gone directly to the Too Big to Fail Banks. The banks have taken that money, and now are borrowing from the FED at super low interest rates. What do they do with this super cheap money? They buy US treasuries. This is the new normal for monetization. Why come out publicly when a thinly veiled shell game will suffice? Throw in a few wars in the middle east, ramp up some protectionist hatred against China (see this) and voila. The smoke mirror machines are working at full force. Don't hesitate to weed through the BS. It's no easy task when there is so much of it out there!
Let me put it one more way. This monetization is essentially like taking money out of your right pocket and putting in your left pocket and thinking you just made a cool 20 spot. Except your left pocket now owes your right pocket $21. See where this is going? Read on for details.
Stealth Monetization
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