If All You Have is a Hammer...

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...Everything Looks Like a Nail.


OK, so, today's headlines read:


FORD Requests $9 Billion Loan in Plan Submitted to Congress...

BAILOUT MONITOR DECRIES LACK OF COHERENT PLAN...

PELOSI EYES $500B MORE...

Data signal deep global downturn...

Manufacturing hits 26-year low...

Schwarzenegger declares fiscal emergency...

Treasury Yields Plunge to Lowest on Record...
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In the face of this financial dilemma, caused by too much debt, 

what's their proposed solution?

"Let's borrow some more!"

READ IT

All they know how to do is:
BORROW / BOND / TAX / BAILOUT / BANKRUPTCY.
That is their entire plan.

Watch your thumb.
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The Great Chase

Some say that inflation is caused by "Too Much Money Chasing Too Few Goods"?

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Economists, talk show hosts and "experts", like to repeat that line. Over, and over, and over.
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But, is it true?
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The Federal Reserve said that in April 2008, our money supply was $7.7 trillion.

SEE GRAPH

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Lately, "financial leaders" (yikes!) have added, or are adding $8.5 trillion to our money supply.

SEE ARTICLE
AND HERE

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Umm... I thought we were worried about having too much money?
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Wow. They have just borrowed more money, than we have in our total money supply! And that money was a loan too!

Hmm... do ya think that will be a bit hard to pay off?
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When the new round of borrowing begins to get paid back, prices will be bid up, not because there will be too much money, but because there is too much debt! - they will be sliding the prices upward to capture enough existing loan principal in ther economy, to pay the interest on their own loans.

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You want to see inflation?
Wait until these new loans come due.

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