The Anglo-West's ruling class is pulling out all the stops to save its supranational governing structures. The Fed is loaning massive dollars to Europe:
Since these are swaps, the EU has to put up something as collateral. Guess what that means! The Fed will be adding more junk assets - sovereign debt from Greece, and perhaps even Spain and Portugal - to join the junk mortgage assets on its balance sheet that it still can't unload in the markets.
This also means that the Fed will have to create more dollars out of thin air just to make the swaps. Does your wallet feel lighter? It will once all of these newly created dollars start circulating. Watch commodity prices head up all over the world in 2011.
Wow. The Fed has cast the die for hyperinflation and the eventual replacement of the U.S. dollar. I won't speculate on what will replace it. It is far more important to think about the kind of political regime that will replace what currently exists in the West.
The Federal Reserve late Sunday opened a program to ship U.S. dollars to Europe in a move to head off a broader financial crisis on the continent.
Other central banks, including the Bank of Canada, the Bank of England, the European Central Bank, the Swiss National Bank and the Bank of Japan also are involved in the dollar swap effort.
Since these are swaps, the EU has to put up something as collateral. Guess what that means! The Fed will be adding more junk assets - sovereign debt from Greece, and perhaps even Spain and Portugal - to join the junk mortgage assets on its balance sheet that it still can't unload in the markets.
This also means that the Fed will have to create more dollars out of thin air just to make the swaps. Does your wallet feel lighter? It will once all of these newly created dollars start circulating. Watch commodity prices head up all over the world in 2011.
Wow. The Fed has cast the die for hyperinflation and the eventual replacement of the U.S. dollar. I won't speculate on what will replace it. It is far more important to think about the kind of political regime that will replace what currently exists in the West.
