VHeadline's Washington DC-based commentarist Chris Herz writes: The US Federal Reserve have announced that they will buy from the US Treasury another US$750 billions in securities based upon troubled real estate instruments. This is on top of $500 billions already purchased.
What this really means is that the USA have just printed another $1.25 trillions in money. With utterly zero, nada, zip for backing. So gold rose over 26 dollars in one day.
This is the real story, carefully announced whilst the US media and politicians divert attention to excessive bonuses to a few insurance executives in a division of the AIG Corporation that we are now learning had little or nothing to do with the meltdown of that corporation and of the financial masters of the universe.
Oh well, although why anyone needs millions of dollars per year to get along, even in New York escapes me. I have dear cousins living there who do not see that sort of money, but manage to live quite well, raise their kids to be good citizens and are quite happy enjoying the cultural life and other amenities of that great world city.
I digress. What is the real root of the scandal are the massive subsidies now pouring into the insatiable maw of the international banking system. We here at VHeadline were quite right, as events are now showing, when we mentioned that AIG is now being used as a conduit to shore up banking credit by means of placing value on worthless "assets" in the entirety of the international financial system.
For the moment everything looks rosy. The stock market is up . . . But the printing presses in the basement of the treasury are running night and day.
But already we begin to see signs of inflation, even in the midst of stagnating production. Stay tuned folks. We are in for a merry ride.
What it means for Venezuela is that all kinds of folks are going to come to you from China or Russia or elsewhere offering payment for your resources in US dollars. They will offer what seem at the moment fine terms but brazenly ask for long-term commitments in full knowledge that the dollar now has no future.
Beware.
From the imperial capital
Chris Herz
chris.herz@vheadline.com
