Fed Laundering Treasury Purchases to Disguise What’s Happening – Paul Craig Roberts


 

Source: http://usawatchdog.com

By Greg Hunter

 

5-14-2014 9-21-24 PM

Fed Laundering Treasury Purchases to Disguise What’s Happening – Paul Craig Roberts

 

In his latest article, former Assistant Treasury Secretary Dr. Paul Craig Roberts says, “The Fed is the great deceiver.”   Why is he making this shocking accusation?   The reason is tiny Belgium’s whopping purchase of $141 billion in Treasury bonds earlier this year.   Dr. Roberts explains, “We know that Belgium didn’t have any money to buy $141 billion worth of bonds over a three month period.  That sum comes to 29% of the Belgium GDP.  So, they don’t have a surplus in their budget that is 29% of their GDP, and they don’t have trade or current account surplus in that amount.  In fact, everything is in the red.  Their budget deficit is in the red, and their trade and current accounts are in the red.  So, Belgium didn’t have the money, and yet, they managed to pick up $141.2 billion in U.S. Treasuries over a three month period.  So, where did they get the money?”

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On the steep drop in GDP growth of a paltry .1% in the first quarter, Dr. Roberts says, “What I find most amusing about this is they had to claim some real growth in the first quarter; so, they eked out .1%.  Now we know they got that by rigging the inflation number they used to deflate the gross domestic product (GDP).  The real GDP in the first quarter, properly deflated, was negative and probably also in the fourth quarter.  Most likely, this coming quarter, they are not going to be able to hide the fact that it is negative. . . . I am convinced the first quarter was negative, and I don’t see how it could possibly go positive in the second quarter.”

FULL STORY

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