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The Fed Money Machine Gears Up to Print Trillions

The process by which the economy is going thru now [last few months] has me dazed and confused... hopefully someone will lead me in the right direction... the TARP program is meant to buy bad assets - so the $250B isn't really flooding the market - plus it's been infused into banks by buying shares...and the dollar has moved up because the de-leveraging of various financial positions along with fund re-demptions requires dollar denominations - so everyone needs the $$ - yet to conquer part of this - the Fed has to continue to sell more Treasuries [future tax income/earnings] to prop all this up...at some time don't we reach a point of diminishing returns... when so much money is out there...thru real dollars and sold debt that the value of the $$ starts a true decline...and how much of our future tax income can the govt sell before they realize the black hole they have created. With incomes falling plus an erosion in the tax base coupled with a growing senior populace that will require more govt $$$ to support - aren't we at a saturation point that spells trouble??? what gets us out of this mess - you can't fund debt with more debt... do we have one of those moments like in Animal House where after they wreck Flounder's car we tell the world - "hey you screwed up - you trusted us"???