Excerpt:
The Federal Reserve, trying to calm turmoil on Wall Street, announced Friday that it will pump as much money as needed into the U.S. financial system to help overcome the ill effects of a spreading credit crunch.Bernanke response is print more money. That is why they call him 'Helicopter Ben.' Debasing the dollar and by running printing presses 24/7 solves all problems, according to the Fed. No big deal. Money is only paper.The Fed, in a short statement, said it will provide "reserves as necessary" to help the markets safely make their way. The central bank did not provide details but said it would do all it can to "facilitate the orderly functioning of financial markets."
The Fed pushed $35 billion in temporary reserves into the system Friday morning, on top of a similar move the day before.
Nobody asks, 'Where did that $ 35 Billion just come from?' The answer is nobody really wants to know. 'We just invented it.' We used monopoly money and added it to the federal debt.' Taxpayers cheer, 'More free money.'
Treasuries Almost Erase Gains as Fed Adds Cash to Bank System
Bloomberg reports the truth again. We cannot post it here. China will be very unhappy. They already said they will not hesitate to dump one $ trillion in US treasuries. No big deal Bernanke says. The Russkies, Iran, Syria and North Korea have purchased new high tech printing presses. They love to counterfeit $ 100 dollar bills.
Shades of the old Weimar Republic all over again.
You and I talked about this 1 1/2 years ago, and we got flamed : )
Have a great weekend!