CNN discussing the FED printing money and possible dollar destruction
Submitted by gabulldawg79 on Tue, 12/16/2008 - 08:26
On the front page of CNN this morning is an article about how the FED is just printing money and how this will eventually lead to inflation and put lots of pressure on the dollar. They don't say how sinister this is of course but atleast they are acknowledging it now.
http://money.cnn.com/2008/12/15/news/economy/credit_market/i...
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they are printing
but the banks are not lending.
It is the creation of new loans that expands the money supply, through fractional reserve lending.
The banks are sitting on the money, so the "trickle" through the economy will be much much slower.
The reasons the banks aren't
The reasons the banks aren't lending is that when they received all this bailout money they turned around and deposited it back in the reserve accounts at the FED who is paying them 1.5% on that money. Why should they lend when they can earn risk free on that sum of money.
Normally, you would be correct, but the FED is side-stepping the fractional reserve system in its money creation, since September it has engaged in a hybrid type of quantitative easing, but now it is going to go to pure quantitative easing which is direct injection. The money supply has increased over $1Trillion since September, and with this latest round of quantitative easing about to stike the pad, that will prove to be massively inflationary.
http://www.1776solution.blogspot.com
"So long as the people do not care to exercise their freedom, those who wish to tyrannize will do so; for tyrants are active and ardent...to put shackles upon sleeping men.
— Voltairine de Cleyre (1886-1912)
http://militantjeffersonian.com
"Men do not willingly read unpalatable truths of themselves. The People like those best who fool them most, by pandering to their vices and flattering their foibles" Raphael Semmes
Birthdate is
1866, I believe.
Mine? or de Cleyre's?You're
Mine? Pretty near.....or de Cleyre's?
You're right...typo.
http://www.1776solution.blogspot.com
"So long as the people do not care to exercise their freedom, those who wish to tyrannize will do so; for tyrants are active and ardent...to put shackles upon sleeping men.
— Voltairine de Cleyre (1886-1912)
http://militantjeffersonian.com
"Men do not willingly read unpalatable truths of themselves. The People like those best who fool them most, by pandering to their vices and flattering their foibles" Raphael Semmes
LOL :)
de Cleyre's. :) It is a great, great quote...
The full quote is really
The full quote is really good, just not enough space for it. I tend to change quotes often....so, since I had to make changes I put a Jeff Davis quote in place of it, equally as qood.
http://www.1776solution.blogspot.com
"The principle for which we contend is bound to reassert itself, though it may be at another time and in another form." ~Jefferson Davis
http://militantjeffersonian.com
"Men do not willingly read unpalatable truths of themselves. The People like those best who fool them most, by pandering to their vices and flattering their foibles" Raphael Semmes
Since September, the FED has
Since September, the FED has printed over a Trillion Dollars in NEW MONEY. It has, up until now used a type of hybrid quantitative easing, but appears to be gearing up for pure quantitative easing. In other words, it will by-pass all "normal" means of fractional reserve banking of injecting money into the economy and start PRINTING and directly inject it into the economy. It is already bad enough and bodes badly for the amount of inflation heading our way, if they take the path they appear to be preparing for then all bets are off.....GET READY FOLKS!
http://www.1776solution.blogspot.com
"So long as the people do not care to exercise their freedom, those who wish to tyrannize will do so; for tyrants are active and ardent...to put shackles upon sleeping men.
— Voltairine de Cleyre (1886-1912)
http://militantjeffersonian.com
"Men do not willingly read unpalatable truths of themselves. The People like those best who fool them most, by pandering to their vices and flattering their foibles" Raphael Semmes