Created Currencies … are NOT GOLD!

[Jay]

easy read:

If I am playing Monopoly and I change the rules to allow me, and only me, to add $85,000 to my stack of money, it seems likely I will “win” and own more property. Eventually, no one will want to play with me because I created $85,000 of fraudulent Monopoly money.



If I am a central banker and I create $85,000,000,000 every month to buy bonds, I will own lots of bonds in a few years. People will eventually realize my $85,000,000,000 per month gives me and my friends an unfair advantage and most others will refuse to play with me except when necessary, and they will certainly seek other “games” that are more fair and less slanted toward the player who can create boatloads of currency from nothing.


http://news.goldseek.com/GoldSeek/1381327200.php

 

[pmbug]

I think we can already see that happening as foreign holdings of Treasuries have been declining since March and the Fed is buying 90%+ of all new issuances. The market couldn't be any more distorted or farcical.

 

[ancona]

With the current congressional gridlock, and the 17th of October rapidly approaching, expect to see far more drama and far more nations bailing on T-bills.

 

[Aubuy]

With the current congressional gridlock, and the 17th of October rapidly approaching, expect to see far more drama and far more nations bailing on T-bills.

We are obviously going to keep raising the debt ceiling and borrowing money we can't pay back, so this short term melodrama will end soon, and nothing much is going to change. It's like watching a circus act where the guy spinning the plates keeps adding more and more, and surely he's going to drop one, and the whole thing will come crashing down, but no, he adds another one and keeps spinning and spinning....