Spinal Fire Scientia Est Potentia

I just had a brilliant blog get erased and I am pissed so here is the stupid link
Just read it before the Breadlines and Wheelbarrows

http://www.learcapital.com/marketcommentary/7071.html

Here's Two telling quotes:
"This is no mere recession, and it is only massive government growth that has kept the plausible deniability in place. In two years, the government's share of the economy grew by 8%, from 35% to 43%. Without this fundamental change in the economy - which destroys the very basis of conventional stock market investing, as explained in the linked article - the US economy is in a collapse scenario.

What the Federal Reserve is doing is directly creating money equal to 9% of the economy, to artificially increase the government's share of the economy by 9%. It is artificial money for an artificial economy to avert collapse. With again, the night and day difference between this monetization and previous "quantitative easing" being that this new money is going directly into the economy, and competing with your money and your savings.

The only way out, as the government may be belatedly realizing, is to grow the real US economy. But you can't grow the real economy when the dollar is too high, because of currency manipulations by other countries. US goods become too expensive to export, even as domestic US industries are destroyed by subsidized foreign competition.

To grow the real economy - the value of the dollar must be slashed. Which, very conveniently, can be done through open monetization. So, you create vast sums of money out of thin air to artificially fund the economy, hoping to string things out as long as possible. Simultaneously, this very public monetization slashes the value of your currency, thereby stimulating real economic growth, which if you get really, really lucky, might grow the real economy fast enough to recover to a healthy level, and allow you to find an exit strategy from the insanely dangerous monetization policy before the value of the currency is annihilated.

That's the theory, anyway.

AND HERE'S QUOTE #2
"It has to be one or the other: either newly created money is going directly into the economy in straight up monetization, or the assets of the US banking system are being sucked out by the voracious Federal Government deficit at a very fast rate, leaving a hollow shell. What the Fed is doing to the banks with sterilization is much like a spider consuming an insect: punching a hole in the exoskeleton with its fangs and sucking the innards out, while the exoskeleton remains an intact but hollow shell. (For those who would say the Fed would never do that to the banks that run it - the Fed has already been doing it, and don't forget the crucial distinction between the interests of the banks and the personal financial interests of the senior executives who run the banks.)

Either about $1,000 a month per US household is being created and spent in the economy in direct monetization, competing with your dollars and savings - or about $1,000 a month per US household will be sucked out of the banking system by the government through sterilization, meaning less money for business and consumer lending, and an acceleration in the decline of the real economy. The former in my opinion is the much more likely route, and represents a radical change, but either way, there is no such thing as "free money", and the piper will be paid. By all of us."

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So this is a rather maladroit blog entry because the back button erased the other :(

*Disclaimer
This is posted on a Gold selling website so the final few Paragraphs are to be taken with a grain of salt.
That said WTF do you think will happen when there is more money in circulation? That's right, your money becomes worth less if not worthless. But the gold bugs hedge against that with physical gold, because it has kept its value for 5000 years! Gold isn't worth double what it was a year ago... your dollars are worth half as less!
Its just something to think about as you cart your wheelbarrows of currency to buy your loaf of bread to get you through the week.