Thursday, September 18, 2008
Executive Summary
- The chance of a major dollar crisis is one step closer to being a reality.
- The US has thrown all fiscal caution to the wind in an effort to prop up our old way of doing things.
- We are exchanging future US liabilities for bad current debts.
- All of this represents the bursting of the largest credit bubble in history.
- The rules have changed. Be prudent.
This report explains the recent move by the Treasury in offering $100 billion in new debt to "help bolster the Federal Reserve balance sheet."
I focus on this because I believe it marks the beginning of the end of the US dollar.
Want to know why gold popped so hard, and the reason why I am ready to call for a major dollar wipe-out?
It is all contained in yesterday’s news that the Treasury Department is going to “help bolster the Federal Reserve balance sheet” by selling Treasury bonds and giving that cash to the Fed. Oops. Today (9/18/08) the announcement is that the amount of new government debt is going to be $100 billion.
Sept. 18 (Bloomberg) — The U.S. Treasury said it will sell an additional $100 billion in short-term debt to aid the Federal Reserve’s balance sheet, amid the biggest extension of central-bank credit to financial companies since the Great Depression.
by jag 
