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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: TH who wrote (101616)	2/24/2009 8:39:56 AM
From: Horgad	Read Replies (1) \| Respond to of 110194

"That didn't strike me as ironic as much as perverse, for just a week ago he signed the largest stimulus bill in the history of man." Somebody should tell Obama that usually it takes two people to play good cop / bad cop. <g> Seriously, I put a little thought into this (emphasis on the little) and this is what my twisted conspiracy ridden brain came up with: If you are the Federal Reserve Bank and you are milking the US for all it is worth, what is the ideal situation or balance for you? My thought is that it is about the same ideal balance between a credit card company and a debtor. You want the debtor to pay the maximum amount of interest (either by having a large debt or high interest or combination of both) that he can afford to pay without tipping him over the edge. So perhaps and just perhaps this whole crisis was engineered to get the US closer to the point of paying maximum interest, but of course they don't want to tip us over edge. So now maybe we reverse policy, stop or slow deficit spending, and we can all work happily for decades to come sending the optimum maximum portion of our wealth in the form of interest payments to the Fed Reserve. The root question is whether or not to believe that things have gone out of control or whether or not to believe that things are proceeding as planned. If things are going as planned, is it more profitable to destroy the dollar and bring on a new currency or more profitable to put the US deeper into debt and then revive the economy, stabilize the dollar, and collect interest? If going as planned, the game (long gold, short dollar) could change in heartbeat (scary thought). If out of control, then we continue down the same path for the foreseeable future. I just think of how this crisis started. It was like somebody one day woke up and decided to flip the credit switch to off. It makes me paranoid. Do you believe the Fed Reserve expands their power and wealth by purposefully engineering booms and busts by expanding and contracting the credit supply or not?