Re: Fed again takes steps to boost market liquidity
- From: Rumpelstiltskin <PleaseDoNotReplyByEmail@xxxxxxxxxxx>
- Date: Thu, 13 Mar 2008 17:14:02 GMT
On Thu, 13 Mar 2008 08:14:34 -0700, Rita <Rita@xxxxxxxxxxx> wrote:
On Thu, 13 Mar 2008 12:38:52 GMT, Rumpelstiltskin
<PleaseDoNotReplyByEmail@xxxxxxxxxxx> wrote:
On Thu, 13 Mar 2008 07:21:56 -0500, Gary <none@xxxxxxx> wrote:
On Wed, 12 Mar 2008 19:57:50 -0700, Rita <Rita@xxxxxxxxxxx> wrote:
On Wed, 12 Mar 2008 17:42:59 -0700 (PDT), mg <mgkelson@xxxxxxxxx>
wrote:
I think I read somewhere that the Fed's rescue attempts were now up to
about 3/4 of a trillion dollars. It's not hard to imagine that they'll
go way beyond that. A few trillion for the banks, a few trillion for
Iraq and the oil companies, a few trillion for rich tax payers. After
awhile it all starts to add up and in the meantime people that work
for a living and people who are retired are seeing their expenses go
up and their income stay the same or go down.
May I ask a dumb question. Where does the money come from the Fed
makes available? What if the borrowers default? In other words,
how does this work. Do they get actual money or credit on the Fed?
They have a printing press in Washington that they laughingly refer to
as the "US Treasury". You say the Forger in Chief needs a
trillion dollars ? Just a second !
The serious part is that when Bernanke runs off an extra trillion,
it devalues the People's money by that much. We are now not only
faced with inflation -- but watered down money. Oh, well -- the
alternative was to tax the hedge fund managers and war profiteers --
and we can't have that. How would they pay for McCain's
presidency ?
I'm so happy that some people understand this, even though
most still don't, or at least they behave and think day-to-day as
though they didn't.
I would still like to have my questions answered in some detail.
Please? Was the money just created out of thin air? Was an
extra trillion that didn't exist before suddenly produced?
I want to know the mechanics.
I don't know if you were asking me, but printing money is
just a matter of cranking up the printing presses, or not even
that, now that money is often just in the form of computer
records. What money should ideally represent is something
of value. It used to do that when dollars were "silver
certificates" that could actually be exchanged for whatever
the prescribed weight of silver was. Because that's now
been abandoned, we have to depend on the government
not printing more money than fairly represents the value of
the country, but with no anchor to something like silver, the
temptation to just print money is all too great, so we have
inflation, and with the government in the hands of utterly
irresponsible people, the collapse of the dollar.
Voltaire foresaw the problem long ago. I've often quoted
his "Louis XIV was a magician, who could make people
believe that paper was money."
.
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