Reply #29: I seem to be at a loss for words! (Mogambo) [View All]

[54anickel]

http://www.321gold.com/editorials/daughty/daughty032305.html

- Total Fed Credit expanded by $7.8 billion last week, and after it gets through being multiplied by the fractional reserve banking system, another few jillions of dollars of potential money was created. Now all you gotta do is walk up and borrow some of it to make it into money!

Enrico Orlandini of the Lasco Report also has been thinking about this stuff, too, and has a new essay entitled "Panacea." He writes "Mr. Greenspan has printed more dollars than all the other Federal Reserve Chairmen put together. It also doesn't quite capture the fact that the monetary growth seems to be gathering speed. For the week ending March 7, 2005, the M-3 increased another $31.5 billion and that's more than $160 billion since the last week in January. If this pace continues, we are on the road to a staggering trillion dollars plus growth in the money supply for 2005. Impressive to say the least!"

But as impressive as that it, life is not all cookies and chocolate milk. He also notes that history shows that "The implementation of paper money almost always begins with fiscal responsibility and good intentions, and it almost always ends in war and the collapse of social order." A relevant homily is that the road to hell is paved with good intentions.

"In conclusion," he says, "watch the money supply and look for larger and larger increases. And remember, you can print it but someone still has to want it. Every day there are less and less people willing to hold dollars. I'm seeing a trend in Latin America that was unthinkable just a couple of years ago. Stores are refusing to take dollars and companies are now writing long term contracts in local currencies. That's never happened before. How far have the Americans fallen? Not nearly as far as they're going to!"

As mad as that makes me, and as much as that scares me, and as much as that makes me write long, rambling hate-filled letters to the Federal Reserve about how they are suicidal idiots who are killing us all by destroying our money, I was not prepared for the how much Total Public Debt ballooned here lately. If you are a spineless coward like I am, then skip the rest of the MoGu and go have a chili dog, which would probably hit the spot right about now. But for the rest of you brave souls who laugh-- hahaha! --at danger, the numbers show that the Treasury and the spendthrift Bush White House and the moronic Congress have borrowed, in sixteen lousy days, $72 billion! Dollars! $72 billion dollars in sixteen days!

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