300 Billion in a Single Week

The US Central Bank has come to the rescue of small and medium sized banks, thus averting an immediate collapse of the financial sector. But the rescue didn't come without a cost. 300 billion dollars have been injected into the struggling banks since I last wrote about this a week ago. That's 1,000 dollar from every US citizen.

This money is formally presented as loans. The idea is that this will be paid back by the banks, and that there's no negative effect on ordinary citizens. However, that story has been told many times over the past decades, and no-one any longer believes that the money will be paid back. The central bank has drained 1,000 dollar in purchasing power from every single American, and there's no intention to fix this.

Inflation, which is already running hot will become hotter. Ordinary people, who are already feeling the pinch, will be in even more pain. The dollar is teetering on the brink of collapse.

Reflection in a soap bubble

By Brocken Inaglory. The image was edited by user:Alvesgaspar - Own work, CC BY-SA 3.0, Link