Friday, August 7, 2009

Manus manum lavat (one hand washes the other).

Why is the value of the dollar falling? Well, because there is more of it without more things to buy. The Obama regime is printing more of it to cover the deficit.

Here is how the most insidious scam is run by the government. An arm of the FED declared that bank assets in derivatives backed by mortgage is worth nothing. That made the banks insolvent. The FED then "bailed out" the banks by loaning them money and acquired partial ownership of the banks. The banks now buy Treasury Notes on which the Federal government pays interest. Where does the Federal Govt get the money to pay the interest? It sells Treasury Notes to the banks.

And we sent Berni Maddoff to prison for life?

These facts are known to other countries, to me and now to you. So, the "creation" of money will not be hidden and the dollar will lose value. Gold will rise. The question is just when and how much.

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