Treasury Auction Results Were Misleading
Zerohedge, Chris Martenson, and Karl Denninger have all reported today the uncovering of evidence that the Federal Reserve has indeed gone against their own sworn statement to Congress that they would ‘not’ monetize the U.S. debt.
On July 30th, 2009 an auction for 7 year treasuries was conducted. At the time the auction results were viewed as being ‘successful’. Meaning that there was good demand for the purchase of the treasuries. Essentially communicating that ‘trust’ in the U.S. was ‘good’
What has been uncovered today is that some broker dealers (who participate in the auctions) were reimbursed if you will by the Federal Reserve for their purchases. This is a significant event and one that must be exposed.
If these details are indeed factual, which they appear to be then it means that ‘demand’ for the treasuries was created artificially. Additionally, it reveals that Chairman Bernanke actually has lied to Congress that the Fed would ‘not’ monetize the debt.
Stop the presses… The Federal Reserve Lies!
From Karl Denninger:
