The Treasury and Federal Reserve have become a PushMePullYou.

I'm not going to go into a big tirade about this. Anybody likely to read this blog is likely to know how I feel about US monetary policy.

Up until this point the US has been expanding the monetary supply and funding it's deficit spending by selling Government bonds. The market for bonds is now unable to keep up with projected spending. The US will now buy it's own bonds as a way to fund the growing debt, projected to increase by multiple trillions of dollars in the next few years.

This policy will massively increase liquidity in the system. It will greatly decrease the likelihood that the debt will ever be paid off. It will change the way current debt holders regard the value of the bonds they hold. It will eventually lead to a holocaust of hyperinflation.

We are still being told to expect deflation.