No duh, of course, but one interesting thing to note here is what Peter Schiff has said about the reason the Fed is buying the t-bills. As we have noted in our audios, there has been a lot of chatter in poltical circles about so-called "deflation", which is bogus. The dollar has already been inflated and lost (on average) at least two percent of its buying power annually since the creation of the Fed (and that's compouned yearly, by the way). The only reason the dollar still buys anything is thanks to the productivity of people, which provides us the opportunity to get things for less. But Schiff has noted that all the blather about supposed "deflation" has been a straw dog, a smoke screen to facilitate the Fed buying a tons of T Bills, which is itself happening because the fed has to act as the buyer of last resort -- no one wants the T bills because they know (as we've been saying for two years) that the bills will be paid back in worthless dollars.

http://www.bloomberg.com/news/2010-11-06/treasury-yields-tumble-to-recor...

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