I get this sneaky feeling that all the ruckus about the AIG bonuses is just smoke and mirrors, covering up a much more serious situation that started the day before yesterday. That situation is that the Federal Reserve dumping $1.1 trillion into the money supply.
For years I would hear the business news and my eyes would kinda just glaze over, I didn't have a clue what the hell they were talking about. I'm going to write an overly simple analogy so I can understand this situation.
OK, I lets say I have 2 pieces of gold that weigh one ounce a piece, today's value of about $2000. I take one piece of gold into the television store and I buy 1 big screen TV. The next day, lets say there was some hiker on the Grand Mesa and he discovered a huge stash of unclaimed gold lets say a billion ounces. Because of supply and demand, the huge gold find makes the price of all gold pieces to fall (knowing that if you have a surplus of an item on the market the prices fall).
The third day I go into TV store and try to buy a second television with my second piece of gold. The TV salesman guy would say to me " Your 1 little piece of gold isn't nearly good enough to buy that TV now, you will need 100 pieces to buy the TV."
"What my 1 piece of gold bought a TV 2 days ago and it won't now? But I worked and saved to get enough money to buy this piece of gold and now you are telling me it is worth 10% of its value 2 days ago?" "That's right." says the salesman "and if I was you, I would get rid of that gold now before it becomes even less valuable." I followed his advice and went and sold my gold for the $100 it was worth, having lost 90% of its value.
Now you see why I don't write short stories.
This is the same principle that the Federal Reserve is doing with our dollar bill. We have pieces of paper instead of gold and the hiker is the Federal Reserve buying it's own treasury notes (making money), so I guess now we can expect the prices of goods to rise (inflation) and the value of our hard earned money plummets.
But at least we are busy in Congress worrying about money a company spent, which was authorized by the Congress, if they would have bothered to read the damn bill.
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