Zero Hedge explains it succinctly here: http://www.zerohedge.com/article/fed-enabling-foreign-central-banks-swap-out-their-agency-debt-treasuriesThe Federal Reserve has effectively been monetizing far more US government debt than has openly been revealed, by cleverly enabling foreign central banks to swap their agency debt for Treasury debt. This is not a sign of strength and reveals a pattern of trading temporary relief for future difficulties.
This is very nearly the same path that Zimbabwe took, resulting in the complete abandonment of the Zimbabwe dollar as a unit of currency. The difference is in the complexity of the game being played, not the substance of the actions themselves.
The shell game that the Fed is currently playing does not change the basic equation: Money is being printed out of thin air so that it can be used to buy US government debt.
When the full scope of this program is more widely recognized, ever more pressure will fall upon the dollar, as more and more private investors shun the dollar and all dollar-denominated instruments as stores of value and wealth. This will further burden the efforts of the various central banks around the world as they endeavor to meet the vast borrowing desires of the US government.
Martenson's original (and lengthy) post is here: http://www.chrismartenson.com/blog/shell-game-how-federal-reserve-monetizing-debt/25806
Now. The question bears repeating: Just exactly WHY do we let a tiny cabal of bankers control (and ruin) our currency? Are we really this stupid?
I'm giddy for the collapse. I'm ready to make any sacrifice necessary. Are you?