Thursday, October 9, 2008
Will the success of the bailouts depend on China?
The Fed is out of money. The US Treasury is trying to prop them up. But in the end it will need foreign money, the owners of vast amounts of US Treasuries to bailout the financial system. This is a long read, I struggled to follow, but now understand better the relationship between Fed loans, US Treasuries, the value of the dollar and inflation. Read when you have some time, but well worth it. Forget hoarding gold and silver, maybe we need to start learning how to speak Chinese as a way of surviving in the future.