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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: Giordano Bruno who wrote (38794)	6/1/2011 10:10:14 AM
From: Real Man	Read Replies (1) \| Respond to of 71476

Whether or not the Fed can write a blank check to the government is only marginally relevant. The Fed is creating money out of thin air to buy the government bonds, so, GS sees $130 oil. If the Fed wrote a blank check to the govt, GS would probably see $600 oil? -vbg- Of course, Ben would say... Hmm... it is VERY relevant, I reside in NYC, not Harare. In Zimbabwe the central bank printed money to finance the government directly, but that money devalued so fast, the government still ran huge deficits, so the central bank printed more money to finance new deficits. -vbg- In the end, if the SAME amount of money is printed, then is it relevant, really, where exactly it goes? I think in Weimar money was created the same way the Fed does it, but I need to check. So really, does it matter?