Ben Bernanke, chairman of the U.S. Federal Reserve Bank, has been caught in a lie; and he lied under oath. He promised congress he would not monetize the debt. President Obama didn't flinch, as they both like to spend money.

Now we find out Bernanke is monetizing our debt. The Fed intends to buy $600 billion dollars in long term treasuries by end of June, 2011. Since learning of this potential catastrophe, there is a global outrage growing over the Fed's spree. Using the economy, the wasteful spending and the incredible rise in our national debt, the government is doing what Rahm Emanuel, Obama's previous Chief of Staff said; "Never let a serious crisis go to waste." But at what cost.

First, what does monetizing mean; 2nd, what does it mean to the future economy of our country and 3rd, what is the end result.

Monetization is converting something into legal tender (money). It's the process of printing bank notes, using valuable items like diamonds, silver or gold to back it up. Sometimes items of no real value are used, like in this case, treasuries. The main purpose is to increase the money supply to buy U.S. debt with money created in thin air, with no back up. Pumping more money into the economy causes inflation.

When you print more currency with nothing to back it up, except treasuries, it's like "check-kiting", where you obtain credit or money using bad checks. Soon, the checks start bouncing and then it's either filing bankruptcy or going to jail. No matter how corrupt and greedy the government can be, people still keep their jobs, everyone blames someone else and nobody goes to jail. Who loses? The taxpayer!

Monetizing the debt shrinks the dollar value, money will be worth less, wages (if you still have a job) will be less; bank accounts and 401k's and stocks will shrink, price of food, gas, utilities, housing and daily necessities will necessarily skyrocket. This will lead us into a deeper recession and a possible depression.

Peter Schiff says, It's scary how clueless Bernanke is.

Monetizing the debt destroys the value of our currency. It will destroy the confidence of other nations buying any of our debt. Our credit rating would drop. This procedure is what 3rd world nations do to help get out of debt. The outcome is grave and could have an irreversible effect on the United States of America. We would surely lose our international prestige as well as our nations sovereignty.