Fed Isn't Just Buying Treasuries

It has come to my attention that the fed has a strategy to prop up the stock market. With the limitless liquidity provided by the fed, it would be possible for the stock market and other equities to rise in value even during a time of high unemployment, deflation, soaring commodities, etc. Facts will come soon with quotes and references, but doing research on Bernanke, he explicity stated that it may be a need of the fed to do so. Despite the fact that the fed had purchased multiple equities by way of TARP, this is on a different level.

The question is this: What happens when you push interest rates to as low as they can possibly be without people crying foul/manipulation, consumer confidence is not rising like it should be, expenditures and consumption is not increasing, overall home sales are declining, banks are not lending at the pace they should be, and the only thing that these low rates are spurring is refinances for current mortgages? Well, here is what you do - Increase, artificially, people's investment portolio's, increase their 401K's, make them feel wealthy again, and then hope that confidence rises and, thus, rising consumption. This is exactly what is happening right now behind the scenes, and here is the problem - How do you get out? Selling these equities will spark a fierce drop in the stock market. However, with the SEC making it impossible for stocks to make such a dramatic move by passing certain legislation, this will be much harder than previously done (Seems interesting, just as the market begins to rally, they had passed that rule... Google it). So, now that it is harder to get out of it, what about the artificially low interest rates? How do you get out of those positions? Once again, that will spark a massive sell off... The only logical asset to hold is gold and other precious metals, as when this market falters because of the massive fed sell off - The commodities will skyrocket...

BUT WAIT - They are skyrocketing right now... As China is decreasing their dollar holdings and the dollar continues to weaken, the money is flowing into gold and other precious metals - Why is it that the safe haven of gold for (non existant) inflation is rallying during a time of deflation? Why is it that treasuries are skyrocketing right now to all time lows? Where is this money coming from? Could it be that countries are beginning to buy up the assets that will perform best once this bubble pops?

... Article to come: The New Bubble - The Taxpayers Money Being Used to Prop Up Wall Street.