Today is a day to be marked on your calendars. It is the day it became apparent what the fedgov is going to do about the calamity with our money.
The Dow Jones Industrial Average is up over $400. A barrel of oil is almost $110. Gold is sorta marking time, along with silver. What the hell is going on? I'll tell ya' what's going on.
The Federal Reserve Bank is bailing out the nations banks by "injecting" liquidity into the market. And how do they inject liquidity? They inject liquidity by supplying to the banks money in the form of cash, secured by instruments of value. What is the instrument of value? The same goddamn worthless toxic mortgages that have us here in the first place!
Maybe they are just selling these bundled mortgages for todays home prices and not for the inflated price of the old toxic martgages.
So the money is flowing again and we, the U.S taxpayers are bailing out this incredible banking mess. The Federal Reserve is going to bail out the banks. And we have been told it would not happen. They would have to take their lumps like us peons. But apparently this is not the case.
And these bundled mortgages will be sold to overseas investors. And they will own America. They probably have them all cleaned up and socially presentable for their new owners. How nice.
Well, its the only thing we have of any value. Our homes. Maybe the fedgov will sell them some timber or oil land out west to sweeten the deal. Or maybe coal land in the Dakotas. That Powder River coal is good stuff. China will buy the hell out of it. Might move a few tens of thousands of Chinese workers into the country to mine and load the stuff. What do you bet that they have Peoples Liberation Army uniforms hidden in their luggage?
And there are not many women for the young men of China. Since they have had the one child per family policy, the Chinese have literally killed a lot of the girl babies because everyone wants a son to carry on the name. Can't say as how I blame them for that. I want my son too!
But any Chinese coming here will be after women. Those guys are really after the female of the specie. And they are in a bad way. They would like to come to the US and find a release from their frustrations.
So keep getting ready. This injection of liquidity is monopoly money. Play Dough.
All the world is run by fiat money. No one has a gold standard anymore, though Vietnam and Moldova and a couple other countries are getting close to a gold standard. But right now the funny money guys have the ball and are doing what they will in the market place. And don't forget that all our trading partners are funny money people also. Some of the Scandinavian countries have skilled high production people who can compete in the world markets. The Arabs have all the oil, or most of it. Russia has gas and oil also. And a few other countries have energy fuels or high food production. But that leaves the rest of us suckin' hind tit. So our funny money trading partners will be propping each others currencies up at the slightest provocation. If one big boy falls, they all fall.
It's really an interesting time. Stay alive folks. This is only the first stage!
I just want to add that if the funny money guys get the money flowing again, as soon as it is available, get yours out of the system. Let them drive the price of stocks and mutual funds up and then you get the hell out. Cash in and invest in tangibles. This won't hold on past the election, if that long. And when it crashes again, ain't no rescue gonna work. It will go down the tubes. I had a fella tell me that around the first of the year and I didn't quite believe it. It appears I had better take another look at his prophecy.