Whether it’s to prop up the primary dealers so they have enough reserves to vend US Treasuries to foreign entities needed to fund this nation’s operations during NEXT YEARS PROJECTED RECORD DEFICITS, or IT’S GOING TO REPLENISH THE FEDERAL RESERVE’S BALANCE SHEET because they used up eighty years of reserves in the last nine months stick-saving failing private enterprises, or to reward the banking establishment for a job well done (transferring a record amount of wealth to a discreet few during the last two bubbles), it amounts to nothing more than a tax.
But make no mistake, this sucker is the MOTHER OF ALL TAX INCREASES.
Most folks don’t mind the necessary evil of taxation when they can see it in deed or action- building roads, developing infrastructure, funding an equitable legal system, defense, improvements, etc.
But this money being forcibly extracted from US will be used for paying down the interest on our HUMONGOUS debt service run up by the TWIN BUBBLES of tech and housing.
How much is that? Well, this year, about $400 BILLION. Next year? About $700 BILLION.
Happy now? Does knowing the truth make it hurt a little less?
Welcome to Weimerica. Would you like a coffee? That’ll be $10,000.00 please. Large notes only, we find the small ones often have traces of fecal matter.
We are asked to believe the two liars, Bukkake and Panky, have it right this time (remember “subprime is contained”). OK, two questions:
- What if it doesn’t work? (Probability: 85%)
- What will they do then- come back for more?