Friday, October 29, 2010
Did you catch the Fed's d/b/a notice to "Investor of last resort?"...
And the Fed, like those it rescued sports a balance sheet with $57B or 2% equity supporting $2.3T in assets. Said another way the Fed owns over $2.2 T "worth" of assets that it has NOT fully paid for. And the Fed's leverage is...40 to $1...sound familiar?
So the USD is on path to a new currency but one of the oldest as in:
Seller (China) to US: "We have 10 cargo ships laden with Christmas toys and goodies ready to ship to your port, how do you wish to pay for them?
US (Bernanke) replies; flashing a wry grin "of course, with a smile...:)"
Laughing all the way to the bank - not.