My Dream About Inflation & Warren Buffett On The Bailout

Last night I woke up from a dream where I was paying $10 a gallon for gasoline. I remember vividly watching the total on the gas pump reach $180 before it clicked off indicating that my gas tank was now full. I walked inside the gas station and added a pack of gum to my bill for $9 and also picked up a 20 oz. bottle of water for an additional $7. My grand total for the gas stop $196. Without a wince at the price I pulled out of my wallet a single $500 green American bill with Ronald Reagans face on the front. As I collected my change my eyes focused on the calender on the wall behind the cashier. The date was August 5th 2010.

I’m not worried about Iraq, I’m not worried about Obama becoming president, I’m worried about the dollar. What’s America going to look like when theres an additional $700 billion pumped into our financial system?

Inflation is the silent killer of a currency’s value and history shows that the common people are unaware of inflations dangers until it is to late.

I wonder if the American people will turn on the white house once they realize that the largest bailout of all time is not large enough and that the only thing it accomplished was filling our pockets and bank accounts with worthless dollars.

“It will cost more to solve this problem today than it did two weeks ago,” said Buffett, referring to when Treasury Secretary Henry Paulson’s first proposed that Congress help rescue Wall Street after Lehman Brothers went bankrupt, Merrill Lynch was sold to Bank of America, and American International Group had to be rescued.

“If we don’t get it solved next week,” added Buffett, “I may go back to delivering papers.”

Buffett: $700 billion price tag may be to low.

— Justin of Vizionkc

4 responses to “My Dream About Inflation & Warren Buffett On The Bailout

  1. The Bailout will do nothing to help us. There is no guarantee or provision in the bailout to force the firms to use the funds they receive to extend credit to the US economy! We have to defeat this disastrous legislation. Check my site
    for some tools to fight it.

  2. Sandy– You make a very good point. It is surprising to think that so few people have seen this glaring mistake regarding this piece of legislation.

  3. The problem is that the institutions can’t get credit because because of the bad assets on their balance sheets. The government buying up these bad assets should theoretically allow them to borrow short again and lend, their business motivation and purpose. There need be no explicit mention in the legislation of extending credit to the U.S. economy. Of course they could spend the money they receive on cotton candy and golden parachutes, but they’ll still have stockholders to answer to.

    My question is what are the real harms if this bailout doesn’t, er didn’t get passed?

  4. I see what your saying Wade in theory with these bad assets gone they “should” be able to borrow short term again. My problem is that since the bill does not say anything about extending credit to the US economy they wont. I have not personally read through this 400+ page monster but I have heard from several reliable sources that this bill is loaded with crap. Real crap like protections for wooden toy arrows makers and provisions for Jamaican Rum. If the bill did not pass credit would still dry up and we would go through a deep recession but at least our currency would have a chance of surviving. With this bill passed I can see Hyper Inflation occurring rather quickly.

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