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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?


To: axial who wrote (121513)6/9/2009 1:29:28 PM
From: Archie Meeties6 Recommendations  Read Replies (5) | Respond to of 206191
 
The government is not printing money, even though this is what you'll might hear in gold bug blogs, faux news, or the internet. It is issuing debt, and people are buying it. If you think that's printing money, then you think that those candaian oil trusts you own are "printing money" when they issue debt to fund a long term project. The last auction, (and that for the 30 year) was oversubscribed 2:1 That's radically different than "printing money".

Here's an interesting question: What is the ROI on the investments made by the issuance of treasuries?

For example, what has been the ROI on the TARP funds, we just received 68bill of it back with interest. Was the interest on those 68bill greater than the borrowing costs? It was. The same history of the S&L crisis, when the government massively intervened and setup the resolution trust will be repeated. We'll make money off of recent government intervention. As an objective tax payer, I have to ask the question: Maybe our government is underlevered?