Fed’s Balance Sheet To Hit A Shocking $6 Trillion

"...Ben’s balance sheet was just $800 billion in 2007. It is now $2.8 trillion and is expected to grow to roughly a shocking $6 trillion by the end of 2015. A few more years of trillion dollar deficits that are completely monetized by the Fed should ensure that our government’s creditors will demand much more than 1.6% for a ten-year loan.

The problem is that rising interest rates will cause the Fed to either rapidly and tremendously expand their money printing efforts, which could lead to hyperinflation; or to begin to sell trillions of dollars worth of government debt at a time when bond yields are already rising.

If yields are already rising due to the fact that our creditors have lost faith in our tax base to support our debt, just think how much higher yields will go once the bond market becomes aware that the Fed will become another massive seller.

The Fed’s new policy is incredibly dangerous and virtually guarantees our economy will suffer a severe depression in the near future. For the reasons stated above, it is prudent to use the austerity threats emanating from the Debt ceiling and Fiscal Cliff as an opportunity to accumulate precious metals and their equities. Once those issues are resolved gold should be the primary beneficiary.”

at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/12/13_Feds_Balance_Sheet_To_Hit_A_Shocking_$6_Trillion.html