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Fiat money: Hall of mirrors

Well, if I want to buy a house or a Mercedes, what should I do? Earn the money. Another way, probably lousy (depending on for what you use it) is to take a loan. Now, what if, I could write my loan check - myself. Pretty similar to what if a bank could loan itself all the money it needed.

Well, its nothing surprising fiat money has been around for quite a while. But this takes the cake: http://www.cnbc.com/id/28153817/

Comments of Chuck Butler:

The U.S. Federal Reserve is considering issuing its own debt for the first time, the Wall Street Journal said, citing people familiar with the matter.

"Fed officials have approached Congress about the move, which could include issuing bills or some other form of debt and would provide the central bank with more flexibility to tackle the financial crisis."

NOW WAIT JUST A MINUTE THERE, BIG BEN! This is the bailiwick of the Treasury Dept, issuing debt! You've already got the printing press for currency, and now you want to issue your own debt? This is complete madness, I tell you, complete madness! I think the Fed is thinking of ways to deal with deflation...

James West on the same:

The source of all money in the United States, the printing press itself, is going to issue debt? Does that mean then, that the money it prints to represent the sales of U.S. Treasuries, which is technically not a debt, but a debit, will differ from the money it will distribute representative of (I assume) bonds it will issue of its own?

Well, just when you thought the extent of the doublespeak pervading modern economics had reached a peak! This new issuance of paper, not only backed by nothing, but twice nothing, will elbowits way into the already fetid air being pumped into the global economic patient with a bad case of the bends.


Wonder how long can we deceive ourselves
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