Failed Fiat Monetary System Heading for Rampant Inflation
Paulson's favorite song: "I wish it could be Christmas every day" - well it can be thanks to the Fiat money system...
Better still though is to print up more Treasuries and sell them to stupid foreigners who up until now have had an insatiable appetite for them - could it be that they get a secret kick out of supporting the US consumer society at the expense of their own people?
Unfortunately, however, it would seem that foreigners are slowly wising up, perhaps due to being fleeced spectacularly by Wall St's conspiracy with rating agencies to peddle them garbage mortgage investments and vast tranches of derivatives that will end up being marked to market at a nice tidy 0. So their masochistic desire to support the debt-wracked United States may be waning. This being so it is important to "strike while the iron is hot" and soak them for all they are worth while the dollar is still strong, because once the forced liquidation driving the dollar spike has exhausted itself, and it may have just done so, the dollar is likely to plummet which should be a real disincentive to potential foreign bond buyers. Even this is not an insurmountable problem though as if foreigners' remaining brain cells start to function and they desist from buying Treasuries, then the Fed can monetize them and pass the entire bill on to the US taxpayer via rampant inflation. It's not as though there's going to be a revolution over it.
It's 2008, not 1870 when if the government tried to rip off the public in this manner, they would have found themselves hanging from lamp posts outside their offices. After years of comfy living, television and eating adulterated food and riding around everywhere in automobiles, the American public generally speaking have been effectively neutered, and don't have the stomach to confront the government directly. So the government can and will do just what it likes - and that is manufacture as much money as it takes to dig themselves out of the hole, which as the amount required is fantastic, means that the average Joe in the US, including Joe the Plumber, will have to gird himself for inflation morphing into hyperinflation.
