Free Republic

Monday, September 22, 2008 Whack a Mole The Fed and Treasury's massive and unprecedented bailout of the financial industry has given momentary respite to the American economic system, but the assumption of over a trillion dollars in new public debt has now raised the specter of national insolvency and runaway inflation. The economy is still in decline and the only way that the government will "pay" for these bad loans is by printing money. Accordingly, the price of gold has jumped in the past week from the mid-$700's per ounce to $910, including a $45 per ounce jump today alone....

In Their Credit and Participations PolicyThe [Central] Bank of Spain Takes Part in the Management of Several Banking Entities Fearing the CrisisBefore the lack of liquidity that Spanish banking entities [state-owned “cajas” and private “banks”] find in the international markets, the Bank of Spain has taken a step beyond the habitual plans of inspection and has created committees of coordination in some Spanish “cajas” and banks with the purpose of co-managing the credit investments of greater risk […]. The leader of the PP, Mariano Rajoy, has asked explanations to the governor of the Bank of Spain. […] Lack of Liquidity...