TheSphinx 2.0
03-19-2009, 09:43 PM
I don't know if you guys noticed what happened yesterday but the Fed basically announced it was printing another $1t to pump into the economy.
Since this bailout addiction has started I have been complaining about destroying the value of everybody's hard earned money by endlessly printing money with no growth attached to it. We just did more of it today.
We argue about AIG...we take shots at democrats and republicans...we get in a tiff over silly things and meanwhile the world is burning underneath us. Nobody seems to care. We are getting fleeced and the vast majority of the American people have no idea how they are getting robbed. What is happening right now is bad to an unprecedented scale. What are these people thinking?? Zero percent fed funds rates and we are now trying quantitative easing. You can't force people to lower rates...no amount of money can change a person's belief about their RoR.
Print money for stimulus
Print money for omnibus
Print money for TARP I
Print money for TARP II
Print money to buy our own debt back from us (WTH???)
Trillions and trillions of USD printed with no growth attached to it. The money supply is skyrocketing. More paper money chasing the same amount of goods and services. How can that be good?? I feel like I am a citizen of a 3rd world country. Do we really think we can actually print our way out of this? Seriously, just think about it. Every government can print money. If the answer was to just print why wouldn't everyone have done it in the past. It is becuase printing with no growth leads to value destruction.
What is killer is that people think they made money yesterday. The stock market went up 2% so people cheered, but the USD fell over 2% (and then fell again today)...so you actually lost money because the 2% gain in the market was wiped out by the 2% decline in the USD and all the money that you have that is not in the market went down 2% as well. How can that be a good thing. I feel like we are living in the Matrix.
I know one thing, the world will not continue to give the US an endless supply of credit. There is already talk to move away from the USD as the reserve currency (as their should be since our government and treasury has made it clear that they plan to destroy it). The fact that we are now printing our own money to buy bonds from ourselves is concerning in that it might signal that other countries have already started to cut us off...(God I hope that is not the case).
I really hope Obama and his team have something else planned here becuase if the only answer is to print and print and print and print then the US is screwed.
Since this bailout addiction has started I have been complaining about destroying the value of everybody's hard earned money by endlessly printing money with no growth attached to it. We just did more of it today.
We argue about AIG...we take shots at democrats and republicans...we get in a tiff over silly things and meanwhile the world is burning underneath us. Nobody seems to care. We are getting fleeced and the vast majority of the American people have no idea how they are getting robbed. What is happening right now is bad to an unprecedented scale. What are these people thinking?? Zero percent fed funds rates and we are now trying quantitative easing. You can't force people to lower rates...no amount of money can change a person's belief about their RoR.
Print money for stimulus
Print money for omnibus
Print money for TARP I
Print money for TARP II
Print money to buy our own debt back from us (WTH???)
Trillions and trillions of USD printed with no growth attached to it. The money supply is skyrocketing. More paper money chasing the same amount of goods and services. How can that be good?? I feel like I am a citizen of a 3rd world country. Do we really think we can actually print our way out of this? Seriously, just think about it. Every government can print money. If the answer was to just print why wouldn't everyone have done it in the past. It is becuase printing with no growth leads to value destruction.
What is killer is that people think they made money yesterday. The stock market went up 2% so people cheered, but the USD fell over 2% (and then fell again today)...so you actually lost money because the 2% gain in the market was wiped out by the 2% decline in the USD and all the money that you have that is not in the market went down 2% as well. How can that be a good thing. I feel like we are living in the Matrix.
I know one thing, the world will not continue to give the US an endless supply of credit. There is already talk to move away from the USD as the reserve currency (as their should be since our government and treasury has made it clear that they plan to destroy it). The fact that we are now printing our own money to buy bonds from ourselves is concerning in that it might signal that other countries have already started to cut us off...(God I hope that is not the case).
I really hope Obama and his team have something else planned here becuase if the only answer is to print and print and print and print then the US is screwed.