3/23/2009. The Treasury's Big Gamble
Today's Zinger:
Political slight of hand. AIG in the left hand, Treasury in the right sleeve.
MORNING BRIEFING:
BACKGROUND:
As I discussed yesterday, the US Treasury has authorized the purchase of $1 Trillion in bonds. For those non economic types that are reading, and I hope there are a lot you, this in essence increases the overall money supply without commenserate increases in goods and services which leads to inflation.
I have not seen anything in the media about this until today. I am attaching a link to an article that speaks to this issue. We all need to be aware of this and tell our politicians to wise up and pay attention to something that has real consequences and not bonuses which are nothing more than political theater.
Click here for article on purchase of Treasury Bonds
Political slight of hand. AIG in the left hand, Treasury in the right sleeve.
MORNING BRIEFING:
- On Wednesday the US Treasury authorized the purchase of $1 Trillion in Treasury Bonds, thereby increasing the US money supply about 50%.
- This is a big gamble with the US economy and we can expect inflation. If not carefully executed, and its never been done, we may send this economy into a depression.
- The news media and our politicians are too worried about the $168 million in bonuses at AIG and are not focused on the right issue. This decision is about 6000 times as large as the bonuses.
BACKGROUND:
As I discussed yesterday, the US Treasury has authorized the purchase of $1 Trillion in bonds. For those non economic types that are reading, and I hope there are a lot you, this in essence increases the overall money supply without commenserate increases in goods and services which leads to inflation.
I have not seen anything in the media about this until today. I am attaching a link to an article that speaks to this issue. We all need to be aware of this and tell our politicians to wise up and pay attention to something that has real consequences and not bonuses which are nothing more than political theater.
Click here for article on purchase of Treasury Bonds
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