The Dow goes up 1,000 points. Sounds a little steep for one day doesn’t it? I was at the supermarket today and was looking for the cottage cheese. The real cheap stuff that I buy was $2.29 a pound. It was $1.69 one month ago. Boneless chicken breast is now $6 dollars a pound. I went to a dollar or less store and they were busy ripping the 60 cent stickers off of the cans and putting 80 cent stickers on them. I bought a few that still had the 60 cent stickers.
Inflation is appearing in the food chain. Everybody has to eat. From shopping over the years, I have noticed an awful lot of people don’t look at prices when they shop. They just put it on their credit card and go on their merry way.
Bernanke and Paulson are going to get the system working again with massive loans to the banks. The trouble is, the people that want the credit can’t even pay their present credit card bills. It’s kind of hard to figure out how this will work out for them.
Did you notice that the Fed has now bought into several large banks? Another 250 billion dollars was borrowed using the “Good Faith and Credit of The United States.” Real investors might demand some REAL money and gold comes to mind.
Printing money on this scale is “Taxation without representation.” We fought a war to stop that and became a country in the process. Now we are doing it to ourselves, go figure.
The Fed is throwing money around in extreme fashion more and more frequently. Look for a cataclysmic collapse of the Bond and Stock market within the next 15 days. That would put an end to their spending fictitious dollars and could stop those two nuts from hyper inflating us into ruin. If not, we are toast.
Copyright 2008 All rights reserved