***Really!

Have you heard? Yes, AIG employees are getting HUGE bonuses! Do you know how AIG is paying for these bonuses?...yes indeed...with your tax dollars. I agree, get mad!...but..watch out, because this irritating story is merely a smoke screen. Guess what?...the Federal Reserve is in deeper shananagens then AIG! Whoa! **Deep Breath** What I am about to tell you was "quietly" announced on Wednesday.. It's Friday...and chances are, you haven't heard a thing about this. Listen up, as I am going to try and explain this in terms we can all understand, because honestly, I am beginning to think that people (myself included) do not understand 90% of the financial talk constantly being thrown around, and therefore remain ignorant when it comes to national debt and why this effects everyone...whether you realize or not.

AND THE QUIETLY ANNOUNCED ANNOUNCEMENT IS.....

The Feds are pumping an additional $1 trillion into the economy. Keep in mind this is in addition to any previous bail-out money you have heard of. This money will be used to buy mortgage securities and U.S. Treasury bonds. Don't get caught up in this language but rather understand what the goal is. The Feds goal: To reduce mortgage rates. Sounds great!!! We could use a drop in mortgage rates? But wait....where in the world are the Feds getting this money?????

Well folks, it is quite simple. The government is lending it's own money to itself. Hmmmm? What? Wrap your brain around that for a second. Pretend that you had a money making machine (which the government has). You could print however much money you wanted. So, one day you wake up and you want $1 million.

So, you ask yourself, "self, could I borrow $1 million?"

You reply back, "sure self, let me run off and print you up $1 million dollars, but you have to give me an IOU."

And you respond, "okay, an IOU for $1 million. Sounds like a good deal."

This is EXACTLY what the U.S government is doing. It is literally printing off a $1 trillion dollars to give itself. Keep in mind, the U.S. dollar is not backed by gold, so there is no limit to the amount that can be created....but like anything else, the more there is, the less it is worth.

To drive the point home, after this was announced on Wednesday, the value of gold shot up $75 in 18 hours. This is unbelievable.

This is another "last" ditch effort to stimulate the economy. Could it recover the economy, well, yes, anything is possible, but never in history, has self borrowing worked...never in history! Therefore, chances are, we may end up in a depression anyway, and we will not only be suffering from a depression, we will also be suffering from HYPER-inflation. Keep in mind, the Great Depression took 20 some years to recover from.

Word to the Wise: Get your wheelbarrows ready, because you will need a wheelbarrow of money to buy a loaf of bread!

With that, I'm going to leave you with a quote from Thomas Jefferson.

"Government big enough to supply everything you need is big enough to take everything you have. The course of history shows us that as a government grows, liberty decreases."
— Thomas Jefferson