Friday, August 10, 2007
Central Banks Pour Zeros Into Computers to Stem Market Turmoil
If you have any interest in finance/investment you've probably noticed that yesterday the world's central banks started kicking in great wads of money "in order to provide liquidity." European, Asian, and US central banks, creators of "flying" money, (as the Chinese called it when they first invented paper money way back when), have announced the addition of approximately $300 billion worth of "liquidity".
I'm guessing that there is no printing going on here. These are all computer transfers of ones and zeros into "money market accounts" all living on computers. What it really means is that system banks can avail themselves of these funds at lower than usual interest rates. These banks pay interest to the central bankers (who got the money for free by merely adding zeros) and turn around and loan it out to us at a higher interest rate. The spread, or difference, is their gross profit. So we got the central bankers and the system bankers living off of our backs - instead of congress running the show as dictated by our Constitution.
Adding the zeroes is supposed to calm the money elite down, and to discourage them from "trying to get their money back" which would mean selling the "instruments" when nobody wants to buy. But the addition of zeroes diminishes the value of all of them, so increased liquidity actually means decreased value and you should be getting all "Mogambo" right about now because your dollars are shrinking in your wallet as we speak!
Why are we collectively paying this "inflation" tax to these small groups of thieves? Ron Paul promises to stop this theft, but most Americans can't really understand what is being done to them, or what needs to be stopped.