Federal Reserve Chairman Bernanke does not even bother to lie about "quantitative easing" helping the broader economy. If printing $600 billion--because in essence that is what it is--helps Wall Street that is enough. The Dow is up 218 points today. Small savers like you can go dance to the banks' tune of currency devaluation. Perpetuating the national Ponzi scheme is uppermost: keep short term interest rates near zero; allow the banks to borrow cheap from the Fed; multiply the funds in Wall Street's manipulated stock market money machine and lend some of it long-term dear. Buy back US bonds from the banks. Repeat. No wonder gold is over $1300 an ounce! The idea it to allow the banks to inflate their way out of all the negative equity hidden on their books by accounting tricks (estimated at $15 to $20 trillion in overpriced assets an $10 trillion in bad debt). Even
Goldbags & Sacks says it would take $4 trillion in QE to get the economy moving. In reality we are creating
powerful incentive for future frauds.
The business of America is business, observed President Calvin Coolidge. N
o longer. The business of America is bubble creation even if is at the
expense of foreign economies. US money managers are sending the cheap credit dollar abroad, buying up foreign assets, businesses, commodities and land. One financial observer wrote, "To put it crudely, the US wants to inflate the rest of the world, while the latter is trying to deflate the US." There is more than
one way to fight a war. Dollar devaluation is the US weapon of choice for now.
[image: "Fiat paper bombers" courtesy Gordon T. Long]
