The Big Picture
You would think at some point the government would stop printing money and realize that they're engineering a particularly nasty upswing of inflation in the near future.
The sheer amount of money that they are putting into the system is inevitably going to lead to a huge loss in the value of the dollar.
But, of course, they're banking on the fact that investors will continue to flock to the dollar for a sense of "security" as currencies as a whole around the world continue to lose credibility in the eyes of debt holders like China and Japan.
![adjusted_monetary_base_annual_rate.png](/proxy.php?image=http%3A%2F%2Fbigpicture.typepad.com%2Fcomments%2Fimages%2F2008%2F10%2F23%2Fadjusted_monetary_base_annual_rate.png&hash=de0b65585f325321541db6e936f5dc56)
![image.html](/proxy.php?image=http%3A%2F%2Fbigpicture.typepad.com%2F.shared%2Fimage.html%3F%2Fphotos%2Funcategorized%2F2008%2F10%2F23%2Fadjusted_monetary_base_annual_rate.png&hash=a2aa54f1faec3fc7f002c6c9b87a1fe8)
![adjusted_reserves.png](/proxy.php?image=http%3A%2F%2Fbigpicture.typepad.com%2Fcomments%2Fimages%2F2008%2F10%2F23%2Fadjusted_reserves.png&hash=30c77ef700923a778f9c3da366418dee)
You would think at some point the government would stop printing money and realize that they're engineering a particularly nasty upswing of inflation in the near future.
The sheer amount of money that they are putting into the system is inevitably going to lead to a huge loss in the value of the dollar.
But, of course, they're banking on the fact that investors will continue to flock to the dollar for a sense of "security" as currencies as a whole around the world continue to lose credibility in the eyes of debt holders like China and Japan.
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