Friday, March 20, 2009

Federal Reserve's Last Grasp Efforts

The Fed is down to its last arrow. On Wednesday, it announced it would pump an extra $1 trillion into the financial system by purchasing Treasury bonds and mortgage securities.

That means print money in order to pay for things we don't need, and hope that things turn around.

The last time this occurred was nearly 50 years ago, under very difference circumstances.

This should cause an immediate decrease the power of the already weak dollar. People will be running from the dollar; to where though? Gold? Got to be something tangible, as there is no other currency with the necessary allure.

As we all get into the uproar over AIG $165 million, the Fed is creating out of nothing and spending $1 trillion. That's the real wag-the-dog going on now. Glenn Beck's Last Line of Defense is a good commentary on this and worth the five minutes.

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