The Federal Reserve Bank, which is neither “federal” nor has any “reserves,” has crossed a huge line in the sand. It has begun buying private corporations’ debt through purchases of corporate debt “ETF’s” or Exchange Traded Funds.

It is bad enough that they have been the only real buyer of US Treasury debt (Treasury Bills, Notes and Bonds) for about the last eleven years since the beginning of “QE” or Quantitative Easing, which literally translated means “buying garbage that nobody else wants to buy.” Who believes that Joe Main Street wants to lock up his hard-earned savings for 30 years to earn a measley 1.3%? That doesn’t even keep up with inflation!

What comes next? First government debt, now private debt. Next up is likely to be the purchase of individual stocks. So who decides which stock gets bought? And will you be caught without a chair when they decide to stop buying? How would you know when they might stop?

This is getting to be so unabashedly crooked, I advise all investors to be extremely careful with their hard-earned savings.

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