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Wednesday, September 26, 2012

Fed Virtually Funding the Entire US Deficit: Lindsey - US Business News - CNBC

Fed Virtually Funding the Entire US Deficit: Lindsey - US Business News - CNBC


Lindsey said that with the Fed purchasing at least $40 billion a month in mortgage debt through QE3, “they are buying the entire deficit.”
“I have no problem doing extraordinary things in extraordinary times,” said Lindsey, a former White House economic advisor under former president George W. Bush who now runs his own consulting firm.
...“The Fed, maybe because it can't do otherwise, has told the Congress: 'We're going to buy your bonds no matter what,'” Lindsey said. “I think that's keeping the pressure off the president, off the Congress.”

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