Don’t believe the Fed is simply “printing” money? Take a look at this chart from the St. Louis Fed:
You will have to click here to get the bigger version in order to see the spike in the last few months! Grey bars represent recessions. The spike in the current recession shows nearly a quarter trillion dollars “created” suddenly by the Federal Reserve. No other recession shows such a massive stimulus.
Apparently the government, in order to raise the cash they are spending on stimulus (a.k.a. bail-outs) has proceeded to print vast quantities of dollars. (Heck, I bet they don’t actually have to PRINT anything…. the dollars are just “virtual” sitting in the banks.) You recognize, of course, that if we insert more money “paper” (“virtual”) money into the system that there is wealth backing it up, the value of the dollar drops and so does any cash savings we my be holding.
Cool. The Treasury borrows to cover our bail-out expenses by selling dollar denominated bonds to rich foreign investors (e.g. China, Arabia, etc.) and then prints “virtual” dollars to deflate the dollar so that when it comes time to repay the loans, we pay back with “cheap” dollars. How long before the foreigners figure this out? …NOT so cool!
Credit for bringing this to my attention goes to Glenn Beck’s TV show today. His spin on the graph is captured in a video on his website. Check it out here.
I hope this is a mistake…. but it IS from a Federal Reserve website!