Jump to content

Recommended Posts

  • Replies 30.9k
  • Created
  • Last Reply

Top Posters In This Topic

  • G0ldfinger

    2616

  • romans holiday

    2235

  • drbubb

    1478

  • Steve Netwriter

    1449

This planned universal bale out of all financial groups with bad debt in the US is truly historic!

 

The US government has now openly committed to printing unlimited amounts of new money to try to inflate its way out of the mess it's in (as several on this board have been predicting they would).

 

The cost of living inflation/deflation debate is now settled!

 

The only thing I admire about this action is how they managed the spin:

- had they baled out each organisation as it began its death throws (as they've been doing this last week ) then the progressive loss of confidence in the US would soon have become overwhelming

- but by saying up front they're going to bale out everyone their action actually seems strong and has inspired confidence amongst the sheeple

...but baling out everyone has to be either a good thing OR a bad thing for the US economy - it can't be both. ...each of us must now decide which it is, and position ourselves accordingly

 

My view:

This might be a time for Hank Paulson and Ben Bernanke to be reminded of another well known American who did something historic and amazing, receiving widespread praise and acclaim at first ...but for whom things seemed very different when the full consequences of his actions inevitably became apparent:

 

"I am become death, the destroyer of worlds" - Robert Oppenheimer, Trinity 1945

Link to comment
Share on other sites

 

Peter Schiff on bailout plan, i think he thinks it is inflationary

 

http://news.goldseek.com/EuroCapital/1221845122.php

 

Paulson Goes All In

 

...

Paulson made clear that Congress must pass new legislation to allow the Government to acquire even those loans too poorly collateralized to currently qualify for GSE or FHA absorption. The losses baked into these mortgage products, which Wall Street has been reluctant to even estimate, will now be borne wholly by taxpayers.

 

Paulson assured us that this plan was designed to safeguard our savings. But in typical government fashion, the plan will have the reverse effect as savings is wiped out through inflation.

 

The U.S. dollar will be shattered beyond repair. Interestingly, while both Paulson and President Bush acknowledge that the plan will put “significant amounts of taxpayer dollars on the line,” they did not mention any tax increases. Given the politics, no such move is forthcoming. The printing press is their only solution.

 

Further, since I assume the plan will apply to all mortgage debt, U.S. taxpayers will also be on the hook to bail out foreign institutions that loaded up on the financial sludge. However, once the government takes them off the hook, do not expect them to re-invest the windfall back into other U.S. dollar denominated assets. This get-out-of-jail free card will likely scare them straight. The global mass exodus from the U.S. dollar and Treasury debt is about to begin: do not get caught in the stampede.

 

 

Link to comment
Share on other sites

Trade of the century...

 

US Government to secure mortgage market with gold reserves

Lee Jones - 19-Sep-2008

 

The U.S. Treasury Department has promised “hundreds of billions” to save the US markets using its own gold reserves.

President Bush approved the use of existing authorities by Treasury secretary Hank Paulson to make available as necessary the assets of the Exchange Stabilisation Fund for up to $50 billion to buy more illiquid mortgage assets.

 

CONTINUE >>>

 

NOT!!! :lol:

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

×
×
  • Create New...