POMO and other 'green shoot' recovery fairy tales.........from Rico

The Fed's POMO (permanent open market operations, which consists of Treasury purchases, agency debt, mortgage-backed securities, and other various programs...mostly consisting of buying bad debt with more bad debt...) is having an effect. It's an effect the Government does NOT want you to think about or understand, however.

As a result of POMO, the Fed is printing roughly $15-30 billion dollars a DAY just to keep the country from sinking beneath the economic waves.

I'm no economist...and certainly not a Keynesian...but to me, any country printing $30 billion dollars a day is flirting with Argentinian-Zimbabwean (this A-Z includes W for Weimar) trouble.

Meanwhile, leaving Washington behind for a moment, credit defaults are increasing and banks are pulling-back credit from consumers on Main Street.

Good plan, Team Obama...this will really work well. It'll doubtless work even BETTER with some hefty tax increases and more "wanton-wasteful-willynilly" spending of funny money that we don't HAVE and so will have to 'borrow' and finance the interest on.

That's the end of todays 'green shoots of recovery' fairy tale.

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