The latest by the Mogambo Guru

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While Total Fed Credit was down by a miniscule $1.7 billion last week, the Federal Reserve managed to buy up, for themselves and their Treasury co-conspirators, $1.3 billion of U.S. government securities. Not much, to be sure, but this slimy tactic is called "monetizing the debt"; the government wants to spend money, but doesn't have any, so it creates and sells some bonds, and the Federal Reserve (to its everlasting shame) dutifully creates the money to buy them, and then actually buys the bonds with the money!

This is, in essence, the government buying its own debt by creating the money (increasing the money supply) for that exact purpose! This is absolutely crazy! And while there are plenty of you who will say that the Federal Reserve is a private bank, and is not a part of the government at all, you are correct; it is a private bank. But their website address suffix, ".gov" says a lot to me about the supposed independence of the Federal Reserve. This is partly because I am paranoid and distrusting, but mostly because the Fed has done such a pathetically poor job of preserving the value of the dollar. Of course, it's also with Very Damned Good Reason (VDGR), as the economic history of the results of central banks colluding with governments is bleak, bleak, bleak indeed.

And if you don't think that this monetization of debt is an economic horror, I will note that 1.) This means that you have never uttered such nonsense around The Mogambo or you would still be carrying scars to remind you of your folly, and 2.) This kind of monetary crap does not appear anywhere, in any book on economics, except as an illustration of how an economy was horrifically destroyed by its government acting like idiots and debasing the currency - which set off a war, or revolution, or something. Never anything good.