The Fed and Treasury Will Print As Much Money As They Have To

That’s the takeaway from the latest bailout news. The New York Times has a nice roundup story, detailing the latest bailout moves. The subhead for the story really caught my attention, though: “The Fed and the Treasury signaled that they would print as much money as needed to revive the banking system.” Folks, at some point, inflation is going to rear its ugly head with a vengeance. Look at this chart, which comes from ChrisMartenson.com:That chart is accurate as of October 1, 2008. And it represents the amount of cash that’s been flooded into the market by the Fed. Read the Chris Martenson piece (link here). You’ll see just how daunting that chart really is. Indeed, think about how much more liquidity has been pumped into the system since October. Yikes.Meanwhile, here is an excerpt from the New York Times story:The new actions are unlikely to be the last. Until the economy begins to turn around, Fed officials have made it clear they are prepared to print as much money as needed to jump-start lending, consumer spending, home buying and investment.“They are using every tool at their disposal, and they will move from credit market to credit market to reduce disruptions,” said Richard Berner, chief economist at Morgan Stanley.The Federal Reserve has now moved to a radical new phase of its effort to shore up the economy. Until now, it has carefully distinguished between two goals — reducing the panic and turmoil in financial markets, and propping up the economy itself, which has been battered as the supply of credit has dried up.We’ll see how this all ends.You can read the rest of the Times story here (link).Related Articles:American Visa Signature Card — You Can’t Afford To Leave Home Without It