World-News

from Reason to Freedom
by Peter Namtvedt

03/14/08

The Federal Reserve Bank of the United States announced today before the opening of the stock market that it would create an exchange whereby bundles of mortgages would be bought in exchange for $200 billion of its reserves, for a period of 28 days. If that does not prove sufficient to ’stabilize’ prices and prevent a recession, it would be repeated. Thus, if the prices do not stabilize and a recession does not prove to be prevented in the next month, this will be repeated (I have never heard of a one-month period proving this kind of change of trend). … A grade school kid will quickly tell you that by injecting this much credit into the market, the Fed could be broke in four months...

http://www.reasontofreedom.com/dollar_dead_long_live_gold.html


Informant: Thomas L. Knapp



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