Exactly right. Just think, if they taught how this works in say, high school, the American people would no longer be hoodwinked by this scam. Everyone seems to be upset by Bernie Madoff, but the whole financial sector is a Ponzi scheme with the average person the last guy to get the chain letter.
It's still not too late to buy gold or silver. I'm going to enjoy paying off my mortgage with 10 cent dollars. How about the rest of you guys? It's probably going to be even worse in Europe, because the euro has no reserve requirement. It might be a race to see who can inflate their currency the fastest in a race to the bottom. M. --- On Wed, 3/18/09, Stephen A. Lawrence <[email protected]> wrote: > Just in from the Wall Street Journal: > > > The Federal Reserve said Wednesday it will buy up to > $300 billion in > > longer-term Treasurys > > When the Fed buys treasuries they do it with "new > money", "high powered > money", "magic dollars". Whatever you care > to call it, it means that > they create the money out of thin air. In fact, as far as > I know, this > is the only way the U.S. government currently has for > creating new > money; everything else is just transfer payments. > > Obama's mega plan, and Bush's not-quite-so mega > plan before it, involved > nothing more than transferring a couple trillion dollars > from taxpayers > and bondholders to banks and related businesses. No new > money was created. > > But this is different. > > In plain English, they're *printing* a third of a > trillion dollars. > Printing money is the last and largest "canon" > available to the > government in combating the recession. > > Apply the current high-powered money multiplier to that, > which is > something between 10 and 20, and you get an effective > injection of > between 3 and 6 *trillion* dollars. > > So, they have clearly decided to barrel ahead with > inflating their way > out of the crisis. > > I'd have to guess that, for Bernanke to agree to this, > the current > numbers they're looking at, which haven't been > published yet, must be > *awful*.
