reuters - Centeral Banks inject $trillions$ of dollars

[voytechs]

It has since spread, requiring trillions of dollars in liquidity injections from central banks to keep the financial system greased.

Source: http://www.reuters.com/article/ousiv...41908220080904

Any questions?

[HOLLYWOOD]

Thread already started...

It's all a mess, just exposes the SCHEMES of BANKS and GOVERNMENTS around the world... don't worry, they'll figure out ALL the WAYS to have the PEOPLE PAID the TABS.

[Malakai]

We are doing a lot of the same stuff they did trying to prevent the great depression, which the great austrian economists believe to be the reason it was so bad and lasted so long.

[Zippyjuan]

The reason that the Great Depression was so bad was that the Fed CUT the supply of money and reduced liquidity which meant that nobody had any money to spend so companies could not sell their goods and did not need workers- thus higher unemployment and more people without money to spend, etc. I am certainly not saying that the Fed is doing all the right things now- but that is the comparison they are making and why they are trying to keep the financial markets liquid today. They are trying the opposite track to try and avoid another Great Depression.

[forsmant]

Actually, the fed attempted to inflate, the banks contracted the money supply. The people had greater demand for cash and held more out of banks, which were closing rapidly. The gold standard limited the ability of the fed to inflate since it can't print gold. The fed slowed the inflation in 1929 which burst the bubble and caused the resulting depression. Not enough cash to back up claims of cash. Banks failed. The fed was slowly able to inflate again once gold was outlawed and the currency became fiat, for the most part.

[SeanEdwards]

"Greased" is a really excellent choice of words, because I sure feel the need for some lubrication in this economic buttrape the state is throwing at us.

I think I could wholeheartedly embrace this inflationary monetary policy, if Bernanke would just drop some of those freshly minted hundreds into my hands. But he only seems interested in lubing up the big boys. I guess the trick to getting government largesse is to create a vast economic train wreck that threatens everyone. It's too bad I don't own a bank I could bankrupt, or an Enron style company whose books I could cook. Then I could be Bernanke's friend and receive respectful interview treatment by Fox and Friends.