Will Someone Please Count The Money?

This post is a response to Krugman’s Dire Conclusion by Turfgrrl on, August 11, 2008

So how much paper money is out there anyway. Does it matter that every time The Wizard of Oz (The Fed/government) decides to bailout a financial institution like Bear Stearns, Lehman, Fannie or Freddie, they have to print more and more money. What is behind this printing of money and how do they do it?

We print more dollars as the underlying assets of our country depreciate in real value. Does the Fed really think they are bigger than the market. The dollar is about to look like the peso and then it is ONLY a question of how strong is your local economy? Global trade is now too expensive for the masses. Speaking of masses, massive unemployment in both financial services (only “growth” industry in U.S. for last 5 years, not a good thing since it is inflationary in nature; i.e. money makes more money, but less food) and government (largest employer in the U.S.; such socialistic character is unsustainable) is about to occur.

What to do? The auto and steel industries will begin to manufacture windmills, solar panels and trains instead of houses and cars. Silicon Valley will be the leading innovator in the renewable energy revolution (where the “real” profits will be) and Wall Street will finally find a sustainable mortage business in renewable energy (duh!).

State Pension and other “long-only” savings and retirement funds will buy renewable energy until it is coming out of their ears along with making significant investments in local farms as the social and financial returns on local farming profits will be too large to pass up (global food and transportation costs will experience hyperinflation while land prices for local farms will continue to decrease in price). Great opportunity for our state pension funds to make sustainable double digit returns .

Renewable energy (oxymoron) assets will prove to be the only true guarantor as they are backed by mother nature. Would you rather have solar panels and mother nature as your collateral or a guarantee from the same guys that guarantee Fannie, Freddie and Sallie – our very own Wizard of Oz; The Fed.

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