Federal Sequester - Who's fooling Whom?

$85B - Annual impact of 'Sequester' on US Government Spending.
$85B - Monthly 'purchase' of US Treasury Bonds ($40B) and Mortgage backed securities ($45)

The sequester doesn't touch 80% of US Federal Government deficit spending this year or any year to follow.

And how does the government 'pay' for that deficit? The Federal Government simply issues IOU's in the form of US Treasury Bonds, Bills, and Notes. Because of the eroding confidence in the US Treasury's ability or desire honor those debts - the Federal Reserve Bank buys what the market won't with 'money' ingeniously and simply created on it's own balance sheet.

Sequester? Killing the economy? If a less than 20% cut in the unfunded or deficit spending trigger's a new recession, it's not sequestration that caused it. We need look no further than the chickens of massive Federal Reserve money creation machine coming home to roost, coupled with profligate Federal spending.

Let's get real. Who's fooling whom?

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