Can anyone explain to me where the federal govenment's $700 billion bailout fund is coming from? Are we simply printing whatever money we need, and therefore heading the way of the infamous Weimar Republic--where the currency became so devalued people carried wheelbarrows full of cash to do basic shopping? Or are we raising the dough by selling yet more Treasury bills to the Chinese and other foreign borrowers? If that's the case, no wonder credit markets are so tight, with so much capital being sucked up by Uncle Sam.
I very much enjoyed the “Anatomy of a Meltdown” article in the Dec. 1 edition of The New Yorker (click here for the full article). I believe it should be required reading for every citizen so they know where our tax money is going with this make-it-up-as-we-go-along bailout implementation by Treasury and the Federal Reserve.
However, neither Mr. Cassidy nor anyone else I've come across has addressed this fundamental question about the source of all this bailout money, nor how this will affect our long-term fiscal and ecomomic health.
Does anyone have an explanation?
