Monday, December 01, 2008

It Seems It Will Never End

The bailout total just keeps growing. If this keeps up, the Dollar will eventually be thrown into hyperinflation. Look at what is happening in Iceland this month. Watch the video on that web page featuring Glenn Beck. Here is how things are adding up so far:

$29 billion for Bear Stearns
$143.8 billion for AIG (thus far, it keeps growing)
$100 billion for Fannie Mae
$100 billion for Freddie Mac
$700 billion for Wall Street, including Bank of America (Merrill Lynch), Citigroup, JP Morgan (WaMu), Wells Fargo (Wachovia), Morgan Stanley, Goldman Sachs, and a lot more . On top of $45 billion for Citibank, comes a guarantee of $306 billion in bad loans.$800 billion to buy mortgages issued or backed by Fannie Mae, Freddie Mac, Ginnie Mae and Federal Home Loan Banks.
$200 billion for the auto industry
$200 billion to buy securities tied to student loans, car-loans, credit card debt and small business loans.
$8 billion for IndyMac
$700 billion to $1 trillion stimulus package (from January)
$50 billion for money market funds
$138 billion for Lehman Bros. (post bankruptcy) through JP Morgan
$620 billion for general currency swaps from the Fed

“The numbers change so fast, it is hard to even add them up. Rough total: $3,651,800,000,000 .00 ($3.6 Trillion)

To put that into perspective, the Federal Debt was $5.7 Trillion when President Bush took office. In September 2008, it was up to $10 Trillion. Now in the space of a few months, we have increased it 36%. In September, it was 70% of the GDP, the highest percentage since 1955. The trend is on a steep incline. This is an indication that hyperinflation is not far away. This is a good time to be out of debt, and have as much savings as possible. Realize that Gold is a store of value. When hyperinflation hits, holding gold may be the best way to hedge against that inflation.

No comments: