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View Full Version : The FRN$ is now 100% backed by US Housing Debt



ryshay
23rd November 2009, 17:52
ZeroHedge says:
"A picture is worth a thousand Krugman essays, which is why we present a chart comparing the US Monetary Base (and by subtracting Reserve Balances with Fed Reserve Banks, Currency in Circulation), and the Fed's holdings of MBS and Agency paper (worthless GSE/FHA garbage). In summary: Currency in Circulation: $920 billion; MBS/Agency Holdings: $997 billion. The dollar in your pocket is now entirely backed only by worthless, rapidly devaluing and subsidized housing."

So the FRN$ is backed by toxic mortgage debt written up at face-value on the FED's balance sheet.
What is silver backed by? Nothing--it backs itself up. Intrinsic value.
Dollar bulls, you may now change your pants.

http://www.zerohedge.com/sites/default/files/images/user5/imageroot/geithner/Monetary%20Base.jpg

Mighty_Men_of_Baltimore
24th November 2009, 03:49
Since January? LOL. Change you can believe in.