Bernankes Pig

From Lew Rockwell.com a free column from Gary North

Lipstick on Bernanke's Pig
by Gary North

.....In short, politicians have put taxpayers on the hook for at least $4 trillion in just six weeks.

What caused this? Federal Reserve policy under Greenspan? This was never mentioned. It was world confidence in the United States. ...

...But what was the source of these large inflows of capital? The capital fairy, perhaps? No? Actually, a team of capital fairies. One capital fairy is the People's Bank of China, which inflates at 20% per annum. It buys U.S. Treasury debt. Another is Russia, whose oil exports have blessed the central bank with half a trillion in foreign exchange reserves...

The important thing from the point of view of the men in charge, who did not see this coming and who denied that it was a crisis until the government, without Congress's approval, nationalized the American mortgage market by nationalizing Fannie Mae and Freddy Mac on September 7, is to make it look as though the government has a handle on all this. ...