Earth To Feds; Please Stop It!

US700 Billion to bailout Wall Street, question it's not on the US700 billion but how the US government will going to fork out that amount of money! Having trade deficits running few hundred billions, saving at almost zero level the American government only left with two choices in rising this US700 billion that is to raise taxes and or run the Feds printing machine.

By the look at it "Helicopter Ben" printing machine will have to work overtime once congress approved the bailout plan by Paulson, cause to raise taxes in an American Presidential election years it's unthinkable.

Massive devaluation of the USD will happens once this US700 billion hit the street, how much it'll hurts the real economy when inflation rear it's ugly heads through this injection is anybody guess work. Definitely the world will never be the same again especially when the out look of the USD as the world reserve currency it's threatened by devaluation.

China official media had sounded their official displeasure on the devaluation of the USD, "the Bush administration today announced a plan to use hundreds of billions of dollars of taxpayer money to buy up up bad mortgages and other debts. The process of injecting more fiat money into an already over-inflated system had the desired effect - the Dow Jones shot up 450 points - but the dollar, following a brief jump, began to plummet.

According to numerous Chinese state media news sources today, the Federal Reserve’s continued zeal for propping up the market by injecting illusory liquidity is part of an agenda to gain trust and grease the skids for increased government intervention in financial markets.
China Finance , China News and Chaobao Financial News, all state owned media outlets, slammed the Fed for taking action that will only make long term economic conditions worse and devalue the dollar by “creating money that does not exist which leads to the inflation of liquidity,” a policy contrary to China’s position as a holder of vast reserves of US dollars."

China it's already urging for a new currency order, having holding more then One Trillion in US government treasury bonds, devaluation of the USD in such a massive scales will damper the bond long term price.

At current level of 17% increment of USD circulation p.a worldwide inflation level of average around 20%, with this massive increment of US700 billion only time will tell how much the entire earth will have to bear the consequences of double digit inflation through direct or indirect commodities push inflation.

Therefore the entire earth it's shouting please stop monetization the problems at Wall Street!

Earth to Feds; please stop monetization of Wall Street excessiveness.

When inflation gone north pole, gold price will follow the same direction.

Buy Gold!




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