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Feds to inject cash

What a waste.

Let me post a quote

"Contrary to popular notion, printing physical reserve notes (currency) isn’t the most important mechanism. (Thanks, anyway, to those readers who kindly remind us that the Fed's secret manipulation of illegitimate, 'fiat' currency is root cause of the world's economic and financial ills.) Most of the ‘money’ that flows through the global financial markets is actually electronic data moving from one account to another."
http://www.msnbc.msn.com/id/20218020/

CNN is reporting English and Canadian central banks are going to lend the money.

More manipulation. And the stock market buys into it, making things worse.

"The U.S. Federal Reserve has tried to break the cycle, again, by offering an additional $200 billion to banks, on easier terms and for longer, but confidence in its ability to succeed has fallen."
http://www.iht.com/articles/2008/03/11/business/rtrcol12.php



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He's obfuscating a bit

Fortune Favors the Bold

He's right that the printing is not the most important part. But when the Fed does things like what they did friday, buy the mortgage bonds, that money has to come from somewhere. So they either sell bonds to soak up cash, which expands future debt, or they ultimately have to print money. At some point all that hypothetical data liquidity is owed. With the fractional reserves running negative, yes they will have to print cash to make up for the difference.

Fortune Favors the Bold

The past year or so the Fed

The past year or so the Fed has been "printing" new money at a rate of $60 billion per month. They are bumping up to $100 billion now. The giant waterfall is up ahead and our paddle just broke.

Some economists are bandying about the term "The Very Great Depression".. a previously mythical beast known as an "inflationary depression".

Much fun ahead...

=)