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The Fed is not creating $200B in currency. They are swapping, on a temporary basis, $200B of Treasury securities (which the Fed did not just create either) for other, less liquid securities. It's not a free giveaway and it doesn't pick your pocket.

If I could take bunch of worthless, illiquid toxic waste securities to the discount window, and get a $200billion loan from the fed, which I then to repair my balance sheet so I can then lend 10 to 1 on it and further multiply the money supply, you can be damn sure it's a free giveaway & everyone outside the banking system is getting screwed.

Why do you think gold hit 1000 today? Oil 110? Wheat, corn, hell EVERYTHING is at all time highs against the dollar? Maybe it's inflation from incessant money printing?

Todd, at some point you're going to have to throw in the towel on your Baghdad Bob routine. It's getting a little old.

If I could take bunch of worthless, illiquid toxic waste securities to the discount window, and get a $200billion loan from the fed, which I then to repair my balance sheet so I can then lend 10 to 1 on it and further multiply the money supply

Please show us how a bank with $200 billion in borrowed T Bills can loan $2 trillion.

The securities given in exchange for new dollars had the same price as those dollars at the moment of the trade. You are free to go sell short all the securities you think are worth less than their prevailing market prices. You can't be injured in the matter, at all.

Or do you pretend that no one else shall have the right to trade in any good you possess in any quantity, without a prior "by your leave" from you, since it might change the value of something you own? You realize of course that as soon as you generalize that right to the rest of us, no one will have a right to trade anything at any price i.e. economic liberty will have disappeared.

The Fed is not obligated to differ from the market and place a higher value on dollars than the rest of the world does. And since they are its own debts, it would be remarkably silly to expect it to. Every other isssuer does the reverse, or they'd never issue anything.

Higher commodities prices and a lower dollar are partially due to the scale of past money creation, of course. They are also due to the zero savings rate and resulting need for the US to import $700 billion a year to fund domestic investment. They are also the result of systematic accumulation of strategic reserves by enemy states. They are also the result of a deliberate policy to attack the US economy to force it to end its war abroad. They are also the result of rank speculation, not all of it likely to prove sustainable. They are also the result of real capital losses making some past debt creation less sound than it looked a couple of years ago (too many AZ houses and not enough oil drilling equipment etc).

But you still haven't managed to show the slightest harm to yourself in the matter. It was so obvious to you that commodity prices were certain to spike because of excess money creation by the Fed, right? So you were long lots of commodities and short lots of dollars by owning them with high leverage, right? So you are making out like a bandit, maybe even picking everyone else's pockets, right?

No? Did you find any of it a little harder to forsee? Why would that be? Or do you imagine you have a right to your 50 to 1 leverage futures trades paying off big and *also* the dollars they pay off in being worth more than yesterday? You *did* win gobs and gobs on such trades though, didn't you? Please don't tell us you are predicting only things in the rearview mirror.