elwind45

A Run on Central Banks?

When W.J. BRYANT ran for president 4 times, he ran on a bi-metal backing of our curriency. At this time the central bank is moving further away from hard asset dollar backing. The special lending is the future fall guy for money inflation. We need to back the dollar against a basket of hard assets, which can make the transfer as painless as possible. It is funny how the new lending facility has made the published interest rates meaningless. Now there are three classes of rates. Fed funds, discount, and special investment bank bailout rate. There is slim chance that production will rise to meet this excess liquidity, and I do not think fed will drain any of it out. Prices will raise to meet the reserves and we will experience a new level of prices. Just add another zero to overall prices. 10$ will be 100$. Bryant lost everytime, and the central bank was created instead! The huge amount of worry about the fed's "problems" is focused on the reemergence of P. VOLCKER. The world is worried about the U.S. federal reserve. Painted into a corner between rock and hard place! We will feel the pain of being robbed by washington!