This is another in a series of articles outlining the New York Federal Reserve Bank’s policy to stabilize (artificially prop up) the stock market using Permanent Open Market Operations (POMO). The graphic below from CNNFN.com (2:15 PM, June 10th, 2011) shows another practical example of this policy:
The bars underneath the Dow Jones Industrial Average represent the volume of stock sales for a discrete period of time. About 1:30 PM, the market started to collapse and the Federal Reserve started buying stock. And then bought more stock to stabilize and actually artificially restore some of the day’s losses.
As China has announced today, the United States is defaulting on our debt. Honor and responsibility have been replaced by political expediency, greed and financial incompetence. Printing more money to shore up the market is just another means to redistribute your wealth and retirement savings. How long can the Federal Reserve direct the US Treasury to print money? As long as we let them.
Related POMO articles