Money Is Literally Pouring Out Of Government And Fed Orifices (Mogambo)

[Tace]

Richard Daughty, The angriest guy in economics -- World News Trust

Oct. 17, 2006 -- Total Fed Credit was up only $1.5 billion last week. The big action was in the banks, which were busily creating enough credit for themselves to use to choke down a whopping $42 billion in government debt. In one week! Loans and leases fell, but idiot Americans, at the apparent top of the housing bubble, racked up another hefty $21 billion in real estate loans last week, and the people that already had houses gorged themselves on another $16 billion in home equity loans! All in one week!

I gulp in amazement. This was all helped no doubt by the foreign central banks adding to the madness by soaking up another $12 billion in government securities last week, too, after gobbling up $13 billion the week before that, and stashing them all at the Federal Reserve.

As if to compound their calumny, the damned Federal Reserve also printed up another $3.98 billion in actual cash, enough for every man, woman and child ("Now at exactly 300 million, and growing!") in the USA to have another $13.27 in cash.

Money is literally pouring out of government and Fed orifices, and my fingers were actually shaking in fear as I slammed shut the door of the famed Mogambo Bunker Of Ultimate Retreat (MBOUR). Locked and loaded, I relaxed just enough to notice that the Dow Jones Corporate Bond Index fell all week, and the St. Louis Monetary Base fell $7 billion, almost 1 percent. The rest of the afternoon was a blank, as my Mighty Mogambo Mind (MMM) refused to believe what I was seeing, and it kind of seized up, although I seem to vaguely remember getting telepathic messages from the microwave oven to "Burn everything! Kill them all! Eat donuts! Chocolate ones!"

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http://www.worldnewstrust.com/index.php?option=com_content&task=view&id=389

[bloom]

1. I was getting telepathic messages to eat chocolate yesterday as well.

Not donuts, though. I did have a brownie, however.