Interesting Chart

Over at the Big Picture:

Also, this:

The first chart illustrates how QE2 flushed domestics out of Treasuries and effectively funded 63 percent of the budget deficit in Q4.  The Treasury is prohibited from directly selling bonds to the central bank, but effectively finances the government through POMO.
Given that a large portion of the Rest of World category are central banks recycling BOP surpluses,  it’s likely that 90 percent of the U.S. budget deficit in Q4 was funded by central banks.    You think this may have anything to do with what’s happening in the commodity markets?   That is, the central banks’ printing presses providing the fuel for speculators?

Take a look at that chart.  You can pinpoint the Bush Tax Cuts.  The impact of the Great Recession is amazing.  The actual difference between it and the Great Depression is fiat money versus the Gold Standard.  Now, will we find the limits of paper money before things pick up?