Recession’s Grip Forces U.S. to Flood World With More Dollars (up to $3trillion)

Bloomber(link only) | 11/24/08 | Rich Miller

[TigerLikesRooster]

Recession’s Grip Forces U.S. to Flood World With More Dollars

[TigerLikesRooster]

We are just starting. What we have seen so far in terms of bailout is just a prelude.

[TigerLikesRooster]

Ping!

[ari-freedom]

In Obama we trust

[lonestar67]

The dollar is moving up fast against foreign currencies and money is flooding into our treasury from foreign sources.

Ha Ha anti Americans. We are on the rise again.

The attempt to back the US economy into a corner through escalated oil prices and propping the Euro has failed. Now all hopes rest with the US.

[B4Ranch]

Don’t get too excited yet.

[TigerLikesRooster]

Well, I missed this sentence in my first read-up:

“The Fed could blow through the BOJ’s ceiling,” he adds - - ballooning the central bank’s holdings to more than $4 trillion.

[blackbart.223]

"Don’t get too excited yet."

Better yet don't get exited for the wrong reason. My guess is we are in for a sh#t storm.

[ken21]

remember, on drudge

comrade obamao told us it would get worse.

/s

[Wiggins]

Beware of hyperinflation.

[blackbart.223]

"Beware of hyperinflation."

Someone who understands. If this keeps up hiding money under the matress won't even help.

[douginthearmy]

So in other words, I just took a paycut?

[Centurion2000]

Someone who understands. If this keeps up hiding money under the matress won't even help.

Thank God for hard assets. It's getting to the point that people are going to need to have a small section of investment set aside for consumables and completely fungible assets.

[lmr]

I think it's going to be the opposite.

What we are witnessing right now is the start of a deflationary spiral, in my opinion.

Cash is quickly becoming king because no other place is safe to put our money. We need the trillions in dollars printed to keep up with the demand for cash.

This is the point that is being missed in all of this.

[fatboynic]

Hey, if you can’t beat ‘em, join ‘em. /hand is out

[Vince Ferrer]

Money is disappearing fast as debts defaulted on. This money printed is to replace that vanished debt. Replacing fiat money with more fiat money. If it works without anyone becomeing the wiser, then we can back away from the abyss. If not, then there’s always the abyss.

[blackbart.223]

"We need the trillions in dollars printed to keep up with the demand for cash."

This is a joke. Isn't it?

[lmr]

Monetary policy and the bailouts are related issues, yes. However, they are not completely tied together as you are portraying it.

There is no safe place to put our money right now except to hold cash. Liquidity demands that more currency be printed.

[kittycatonline.com]

Maybe Obama can appoint Robert Mugabe as chairman of the Federal Reserve! Under the Mugabe Plan, we'll have quadrillions to spread world-wide, and more than enough for us at home. You better swipe a shopping cart now, you'll need it to carry that cash around!

[blackbart.223]

"Liquidity demands that more currency be printed."

Oxymoron. If something is worthless making more of it only makes it more worthless.

[lmr]

Assets are being liquidated at a tremendous rate right now. The money supply is tight and must be infused.

People make the mistake of tying monetary policy to the bailouts. The cash is not being printed for bailout money. It is being printed because of the Demand for cash. The dollar is rising, it shouldn't be hard to figure out.

None of these things are good. I am not endorsing monetary policy or the bailouts. My level of pessimism is worse than most.

We are experiencing deflation. If investors can't find anywhere else to put their money, it goes into the mattress. This affects the money supply.

Someone had an article up here the other day in which stated that treasuries dropped 40 basis points in one day, that treasury default swaps were trading below zero which was technically impossible, but it was happening. Like water flowing uphill, history was being made. This stuff was previously unimaginable and yet here it is.

What's in store for all of us isn't good and Barack Obama can't help anyone.