Monday, May 14, 2012


Here is the bottom line, the way out of the worst financial crisis since the Great Depression is to print money. With freshly minted money, this would be used to pay off the debts that were incurred with older money (higher value). Anyone getting paid in todays money that was owed in yesterdays money couldn't be too happy about the still wet inked money as payment.

The ECB printed $trillions of Euros and the FED has printed $2.5 Trillion or so, and our Gov't has been running on average $1.2T in deficits the past 3 years (this compares to $400 B for the Bush adm). No wonder why gold toughed near $1,700 an ounce and OIL ran to above $100 a barrel.

Did this fix anything? Maybe the worst was delayed but not sure it ws averted. In for a penny in for a pound, should they continue this policy of printing to solve the crisis?

This shifts the pain directly to the middle class savers who get nothing for their money unless they risk it in the stock market.

A debt crisis is solved by piling on more debt? Can you spend your way to prosperity? I thought you saved and invested your way to sustainable economic expansion.......not speculated in the markets to a new economy. Not HFT (high frequency trading) to a new expansion and prosperity. Not used SUPER computers to front run trades, is the voting mechanism for stocks dead?


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