“In any case, the response to all of those problems finally caused Ben Bernanke to gas up the helicopters. Last Wednesday, it was announced that the Treasury plans a special series of bill auctions to help the Fed expand its balance sheet. Read: The Fed is going to print money to buy Treasurys so that the Treasury Department can lend money to all these institutions. In other words, the printing presses are setting about monetizing all of our problems. Of course, this will lead to other problems, and it’s why gold exploded by $80 an ounce last Wednesday.
…
Last Tuesday, China’s People’s Daily said that the world is ‘threatened by a financial tsunami.’ In essence, the paper said, countries need to consider building a new financial and currency order that is not dependent on the United States and the dollar. After all, who wants to lend money to somebody who uses a printing press to pay you back?”
Bill Fleckenstein: Whatever we do, it will be wrong

Notes

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