Now when the Fed says that it (Fed) will buy $200 billion of it's (Fed's) own debt, and then zaps out the $ 200B in Maiden Lanes; is just zaps that money out of existence. It could be argued that the money never existed in the first place. However, someone got paid and someone else just conjured the money. Now, if all these were all foreign counterparties then this would result in pure currency war or something. If this was all done fair-and-good then we would have deflationary forces. We thought they didn't want deflation. I suppose that is why they had to give 50% of those AIG payouts to some nice banks that will keep it safe for us. We poor plebes are so inclined to spend money. We mustn't be allowed to have any in this big war of money.

Ben and friends are headed for a getaway at Jekyll Island. I wonder if they have a secret rocket ship that carry them away.

True or False?

- Federal Reserve Board Vice Chairman Donald Kohn said the U.S. economy may get a $1 trillion boost in coming years from the central bank’s purchases of government and mortgage debt, along with $175 billion in extra tax revenue.

Karl please respond to the following article from PIMCO The Exit Strategy: It’s About Hiking the Fed Funds Rate, Not Necessarily Soaking Up Excess Reserves. I am very interested in your analysis.

http://www.pimco.com/LeftNav/Featured+Ma....

Bmitche2 - You should probably start another thread asking your question, this isn't really the place to put that; it'll get lost.

I guess its time to innovate the money and make a new MONEY 2.0 that has no debt and represents the meaning of savings.

The idea of government taking debt and making it into bankable notes is getting a little out of control, adding to a lot of misery and preventing the true potential of human skills to come out.

Any ideas?

Karl in regard to AIG Inside Trading yes they had the info ahead of time

http://online.wsj.com/article/SB12495157....