Fed Traders Buying Billions in U.S. Debt, Nation Risks Credit Downgrade
By Jerome Corsi
At the same time, Moody’s and Standard & Poor’s warned the triple-A sovereign debt rating of the United States is in jeopardy of being downgraded if there continues to be a deterioration in the negative fundamentals of the United States, including the trillion-dollar federal-budget deficits President Obama has run in the last two years.
Unfortunately, this is not the first time since the current economic downturn began that the Fed has bought U.S. debt, and it may not be the last time.
Fed bought $1.7 trillion in U.S. mortgage, Treasury debt in 2009-2010
In March 2009, the Federal Reserve had announced terminating an earlier plan under which the Fed had purchased $1.25 trillion in federal government mortgage-backed securities issued by Freddie Mae and Fannie Mac.