Three-card Monty............by Rico

I gassed-on about last week's auction of Treasuries before the disappointing results were apparent.

Laying-off the US Government debt is becoming more difficult as demand wanes for bonds in the face of higher risk (witness the hisoric yields being demanded).

Bigger news than that, however, is the fascinating game of three-card monty being played by the Fed. All sub rosa. None of it being reported to the public by the MSM a.k.a. The Ministry of Truth. But to anyone looking, this is HUGE news!

-47% of the bonds auctioned last week were quietly taken by the Fed and put on its balance sheet.

- So? This is the Fed monetizing US Gov't debt because demand for the debt (a) is NOT as high as we're being told, and (b) things are much worse than represented.

Taxes will be going up, but there will not be enough money even at a 100% tax rate to keep the USG from going over the financial cliff. We're approaching the end of things....