On NBC news tonight the CNBC "expert" referred to America the Banana Republic. If we keep minting digital cash, buying insurance companies, investment banks, and Brokerage Houses with borrowed money we will indeed become the cheapest labor pool around and perhaps manufacturing will return to our shores. There recently was a slight beginning of the return of out-sourced manufacturing due to the high cost of shipping finished product as related to the fuel factor.
Today, everyone put there happy faces back on as the Treasury and Fed boosted another 180 BILLION
into the markets and announced that they (us) will buy all of the junk paper. Today's injection brings this weeks total bailout to almost 530 billion which has effectively doubled the national debt. It all makes perfect sense to me as 3 Month Treasuries will now get you $4 on $10,000 per year!
This is pretty sobering and kind of makes me think that I'm going to come up a bit short during retirement. Heck I can buy a gallon of gasoline or a loaf of 7 grain Wonder bread by simply loaning our Treasury $10,000 for a year.
One of the most startling things of all is today I saw a Tuk-Tuk
or something similar coming down the road. It made me wonder if we will soon come to this
, but then again I couldn't afford the corn to feed the beast.