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Thursday, August 16, 2007

Monetary hypocrisy

If your or I were to make counterfeit money, we would go to prison.

If the Federal Reserve makes counterfeit money, it's considered "business as usual".

$17 billion today that got injected into the system. That's almost $90 billion since last week.

If this keeps up, the "dollars" that you can print up with the Epson on your desktop are going to be worth more than actual Federal Reserve notes.


Anonymous said...

Before you go off on the Federal Reserve too much, this article may help explain what's what.


I was thinking the same thing until I read that too.

Chris Knight said...

This money is still fiat though: there's nothing really backing it up. It's just numbers in a system. No tangible assets like gold or silver. The *one* substantive thing that's really propping up our dollar (instead of myriads of loans upon loans) is that it's the major currency used in the oil markets. And some seriously wonder how long it's going to be used for that, even.

There's got to come a point when it's no longer possible to keep shoring up short-term loans with more short-term loans...