http://www.dailyreckoning.com.au/financial-problems-in-the-us-are-small-potatoes-compared-uk/2008/09/08/ An independent perspective on the Australian and global investment markets Sat, 21 Nov 2009 17:27:32 -0600 http://wordpress.org/?v=2.8 hourly 1 http://www.dailyreckoning.com.au/financial-problems-in-the-us-are-small-potatoes-compared-uk/2008/09/08/comment-page-1/#comment-40366 Stuart Davies Mon, 08 Sep 2008 16:01:40 +0000 http://www.dailyreckoning.com.au/?p=3644#comment-40366 Here we have a very interesting phenomenon, the dragon eating its own tail, one that we should all take note of. It is a logical outcome of this ridiculous generations-long ponzi scheme that has been orchestrated by the central bankers and their puppet governments. When the Fed takes on loads of government treasury debt, or buys up the dubious "flotsam from sinking wall street ships", what do they care if most of this turns out to be worthless garbage? What have they exchanged for these assets in the first place?Their "vaults" have always been essentialy empty, and they have traded nothing but magic money for them, of which they have an infinite supply. So the Fed absorbs some fraction of the loss of paper wealth that is occuring on a massive scale world wide, only in their case it means nothing to them. It occurs to me that this is a most revealing example of how inflationary and deflationary forces, like matter and anti-matter, meet and cancell each other out, and this is only fitting when this occurs right at the source, don't you think? Here we have a very interesting phenomenon, the dragon eating its own tail, one that we should all take note of. It is a logical outcome of this ridiculous generations-long ponzi scheme that has been orchestrated by the central bankers and their puppet governments.
When the Fed takes on loads of government treasury debt, or buys up the dubious "flotsam from sinking wall street ships", what do they care if most of this turns out to be worthless garbage? What have they exchanged for these assets in the first place?Their "vaults" have always been essentialy empty, and they have traded nothing but magic money for them, of which they have an infinite supply.
So the Fed absorbs some fraction of the loss of paper wealth that is occuring on a massive scale world wide, only in their case it means nothing to them. It occurs to me that this is a most revealing example of how inflationary and deflationary forces, like matter and anti-matter, meet and cancell each other out, and this is only fitting when this occurs right at the source, don't you think?

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