I hope you got gold:
In essence, the Fed now will print money to buy as much as $900 billion in U.S. government bonds through June—an amount roughly equal to the government’s total projected borrowing needs over that period.
Because the shit is about to hit the fan.
You are going to take a 20% pay cut whether you like it or not.
I find it humorous that people are mad about Obamacare and TARP while they are a drop in the bucket compared to what the Fed does on a regular basis without any congressional approval at all.
In case you don’t understand the article, when the Fed buys government bonds, this is essentially the same thing as printing money.
New money is created by debt being issued from the treasury and then being bought with money out of thin air by the Fed.
The Treasury prints up T-bills, hands them to the Fed, and the Fed prints up dollars which it hands back to the Treasury. The amount borrowed in this case is enough to fund the entire government’s operations through June.
Of course, you as the tax payer are liable for the interest on that debt, which will be extracted from your hide at the point of an IRS gun.