Is this true? If so, that shows how fucked we are!!!! -------------------------- In the 5 months since QE II has started, the Federal Reserve has purchased more Treasuries than were issued. I'm really surprised that no one is talking about this. Between 11/17/2010 and 4/13/2011, the Federal Reserve has purchased $508.9 Billion in Treasuries (http://www.federalreserve.gov/releases/h41/) and the Treasury has issued $475.7 Billion in debt(http://www.treasurydirect.gov/NP/NPGateway). Keep in mind that QE Light had started before QE II and continues in parallel. I extrapolated these numbers to an annual basis and got $1.264 Trillion for the Federal Reserve Treasury purchase rate and $1.181 Trillion for the US debt rate. The US debt rate seemed lower than what I heard it was, so I looked a little closer. I noticed that, during this same time period, the US Treasury deposits with the Federal Reserve dropped by $190 Billion and the Treasury printed $36 Billion physical dollars (these were also from the H.4.1 referenced above). Adding these two to the debt and extrapolating I get that our annual deficit is running at $1.74 Trillion over that last 5 months. There might be other accounts that affect this number, so if someone else knows, then please post it. What I believe this means, is that there aren't enough buyers in the world that are willing or can afford to buy $1.7 Trillion per year to fund the US deficit. That means that the Fed can't stop printing for any length of time. I expect that will lead to higher and higher inflation and at some point, the collapse of the dollar.