View Full Version : James Turk: The Federal Reserve Becomes the ‘Buyer of Last Resort’

30th November 2009, 23:17

Good article.

The inflation/deflation debate for the economy often focuses on the quantity of the money supply.

In this article, Turk focuses on the quality of the money supply--that is, what backs up the $FRN? Almost half is from toxic mortgages that no one else will buy.

That is why the dollar is tanking--not just because the FED is printing money, it is what the FED is BUYING with the printed money: TOXIC $H!T!

Sure, a deflationary scare like commercial real estate or Dubai could make a short-term dollar rally. But this is only short-term.

Long-term, the dollar is tanking for fundamental reasons in the article, and the drop can only be stopped if the FED does a 180-deg turn on its policy.
(which they will not do).

Got silver?