So Federal Reserve Chairman Ben Bernanke is willing to pump $30 billion into Bear Stearns to prep it for fire sale to another "private" bank. And it plans to lend another $200 billion to unlock the reluctance of wary bankers to loan to one another. It's slashed its lending rate in response to the sagging Dow, and yet it continues to drop.
Where is it getting these billions from? The Chinese? What will happen when foreigners get tired of earning negative 1 percent (after inflation) on our treasuries? Where then will the next round of Wall Street welfare handouts come from?
I'll tell you: It will come from you and me in the form of an inflation tax as the Fed creates money out of thin air. Get ready for $5 gas.
Letter to the Editor of the Rocky Mountain News, 3/28/08
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