Monetize the debt. What this means is the Federal Reserve would create a trillion dollars with the click of a mouse, and buy $1 trillion of the US debt. This would increase the amount of money in circulation by a similar amount, and make the dollar worth less.
There is currently $8.6 trillion in circulation. After this move, there would be $9.6 trillion, making the dollar worth 11% less. This is how the Fed is going to improve the debt situation that is threatening the economy, they are going to print our way out. They are taking the expedient way out of paying off a debt that is equal to more money than exists, by simply creating more money. That is why gold closed today at a record $1,270 an ounce. When Obama took office, gold was near $700 an ounce, and when Bush was inaugurated, it was near $300 an ounce.
Hyperinflation is coming. I am thinking it is time to convert those savings dollars to gold, if you haven't already. My guess is that the big monetization will start after the November meeting of the Fed, scheduled for the day AFTER the election, so the inflation that follows will not affect the elections.
At least the money is going to worthy causes, like the stimulus money that was spent teaching African men how to wash their dicks.
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