FED BAILOUT TOPS $7.4 TRILLION – $54,371.79 PER TAXPAYER

[digg=http://digg.com/business_finance/Bailout_Now_at_54_371_79_Per_Taxpayer_Inflation_Certain]

Fed Pledges Top $7.4 Trillion to Ease Frozen Credit

The U.S. government is prepared to lend more than $7.4 trillion (Read full article) on behalf of American taxpayers, or half the value of everything produced in the nation last year, to rescue the financial system since the credit markets seized up 15 months ago.

Your tab: More than $50,000.

7.4 Trillion in Bailouts / 136.1 Million Taxpayers = $54,371.79

They say it will be paid back quickly.

But Americans, on the whole, do not have savings. So how can we give them a loan, except by the promise of future tax revenues – AKA printing money.

So, if the companies do not pay back these loans quickly, the money enters the system without tangible backing and we will see prices for nothing because we violate the timeless principle: You can’t get something for nothing in an economy based on the exchange of good and services.

Since there is not an end in sight to this economic crisis, we may end up paying for the bailout with inflation.

Think of it: If you have no money, how can you possibly loan? Americans don’t have 50K per taxpayer laying around to fund this.

The US government is in deficit.

The Fed is the only one with authority to print money — and that’s exactly what we are doing — at the risk of hyper inflation.

Now people have told me we have deflation right now, not inflation. Well certainly. The demand for goods in America have fallen. When demand falls, people decrease prices.

But the day of reckoning is coming – soon this extra money will need to be backed (we used to back our money by Gold). If not, it becomes worth less and less on the world market and the dollar will fall.

Let us hope these huge banks will pay it back quickly. But do count on it. We were told the first bailout would work. We were told a lot of things that have not yet materialized.

My prediction: Because we have more policy and checks in the system, we are experiencing an airplane crash over an ocean, rather than a crash in the moutain. We’re simply buying more time.

What you need to do: Take off your earphones, wake up and prepare for a crash. Pay your debts (interest rates will skyrocket). Make sure you have a stockpile of food for at least a month (flour, rice, beans, tuna, spam all store well).

And we hear today more bailouts will be given from both Bush and Obama but no way to pay for any of them.

Total tab: Unknown, watch the news as your future earnings are auctioned away.

Why economy will get worse:

• Prime home mortgages are now at risk. This month set a all-time record with 3% of prime home loans in or near foreclosure. (Nov. 24)

Watch a video:

[digg=http://digg.com/business_finance/Bailout_Now_at_54_371_79_Per_Taxpayer_Inflation_Certain]