http://globalcapital.blogspot.com

Also among all the turmoil the past few weeks it may have been missed that on Monday this week, the Fed also quadrupled the size of the Term Auction Facility and the Central Bank Swap lines. The Swap lines were increased to $630 billion from about $180 billion(?) last week. The Fed also announced that they would now accept -- believe it or not -- STOCKS as collateral for the TAF. If that's not a sign of desperation, I don't know what is!

All these interventions only continue to increase the sense of panic, not subdue it. We can only build lasting prosperity on a rock solid foundation of savings, integrity, and productivity, not the endless debt and sandy foundation of easy money and easier credit. Businesses that survive the next few years will make it by paying their bills and payrolls from revenues rather than credit lines.

There are ultimately only two ways to pay for these monstrous and staggering creations of new fiat money: cripplingly higher taxes or staggeringly higher inflation by devaluing the currency! I'm betting on a combination of BOTH! All other options, including borrowing from the Chinese, ultimately lead back to one of these two. There is simply no other way to pay the piper!

I admit it. I'm a fan of Michael Pento. Keep up the good work, Michael! Thanks for the words of wisdom!

Fascinating article on the Marxist roots of this bailout:

http://network.nationalpost.com/np/blogs/fpcomment/archive/2008/09/29/bailout-marks-karl-marx-s-comeback.aspx