Talk of The Villages Florida - View Single Post - Do We Realize How Deep The Doo-Doo Is?
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Old 03-19-2009, 06:36 PM
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Default Fear Not ........?

Kahuna......I am also glad you posted your assessment. In an old Dirty Harry movie one of the great lines of all times was spoken by Harry Callahan (Clint Eastwood). He said, "A man has to know his limitations." It's kind of the way I feel posting in an economic/financial thread because the only financial background I have is Economics 101 and 102 in college. I do read a lot, but, I admit I am sometimes confused by the staggering, ever shifting and irritatingly elusive numbers. You helped put it into perspective.

I read today in tomorrow's Australian Wall Street Journal that the Obama economic team has an apparent answer to the dilemma you identified and articulated. Bernanke says our government is going to buy $300 billion in U.S. Bonds, not Gary the singer. Further they are going to absorb $750 billion dollars in mortgage related assets, you know, the ones that many say are at the root of the economic crisis.

But, don't worry....be happy.... fear not, it won't be raised through taxation. Our government is going to crank up the printing presses, actually I think its done electronically, and create about $1.2 trillion new dollars. Penn and Teller would be proud of this magic illusion. Such a simple answer....why didn't TOTV's own pundits come up with that one.

But wait a minute, didn't I read something about inflation in my old Economics 101 class? Hmmmm......I wonder if inflation is a good thing? The Chinese and other U.S. debt holders might be a little miffed at getting paid back with cheap dollars....you think?

Maybe it's a flash of genius after all. Maybe they can just print a little more and cover those who lost considerable investment assets.

From a bunker deep in the heart of Sumter Landing.....have a great evening in the Villages.