In medicine, when a drug addict comes into the hospital for a drug overdose physicians detox the patient by slowly winding the patient down to a functional baseline through the use of medication. After
the patients vitals are stabilized, the physician gives the patient a medication that is similar to whatever the patient became physically dependent on and is hopefully less habit forming than the original. The reason why physicians give the patient seemingly "more of the same" but yet not the same drug is to prevent the patient from going into serious withdrawal and dying. This is what I believe the Fed is trying to do right now on June 24, 2010.
However, this has never been done of this magnitude on Uncle Sam before. Uncle Sam is sick. Very sick. Depending on who you talk to, he's been shooting up drugs since 1968. Fed Chairman Bernanke is doing the right treatment but this is his first time and there are no dosing charts to help guide him. At least in medicine, we have the experience of having treated millions of drug addicts. This is the Fed's first and only patient at this grand a scale because the world trades on the USD for now. Sigh. The only way this winding down method (printing out more USDs and injecting it into the economy) is going to work is if the Fed actually listens to and "measures" investor concerns and looks to see if Americans are actually producing physical goods with the bail out money. They can't just look at jobs and unemployment levels because numbers can be incredibly deceiving. That is how they can tell if they are giving too much medication. The price in gold won't tell them everything.
Another way of looking at the world's financial mess is imagining that the Fed is performing open heart surgery for the first time. Can you imagine? Uncle Sam on the operating table and surgeon Fed Bernanke leaning over him to turn the page for "Open Heart Surgery for Beginners" with his scalpel?
Then, if you're into health care reform, you'll notice that the machine that is being used to keep the blood pumping back into Uncle Sam's body has sprung a leak! If you look at who the manufacturer of the pump is, it says Medicaid and Medicare. Then if you look at where all of Uncle Sam's blood is pooling, you'll notice that Fed Bernanke and his entire surgical team is walking around and standing in it! If you look even closer you'll notice that one of the surgeons is trying to clean up the mess by using and abusing a small sponge called "primary care providers" by squeezing what little blood that's in it back into Uncle Sam even though there is the "insurance company" janitor who makes more money than the surgeons that could help out. The janitor doesn't help out because he gets paid so much he doesn't need to anymore and so now he is wooing the nursing staff called National Association of Insurance Commissioners with his new money.
But it's okay for now because Uncle Sam is getting a blood donation from the anemic European guy next door who is about to die anyways. However, in the wings is a guy waiting to infuse an incompatible blood type into Uncle Sam which is in the form of gold.
Ye-ah. To say investors are scared is an understatement. Sigh.
the patients vitals are stabilized, the physician gives the patient a medication that is similar to whatever the patient became physically dependent on and is hopefully less habit forming than the original. The reason why physicians give the patient seemingly "more of the same" but yet not the same drug is to prevent the patient from going into serious withdrawal and dying. This is what I believe the Fed is trying to do right now on June 24, 2010.
However, this has never been done of this magnitude on Uncle Sam before. Uncle Sam is sick. Very sick. Depending on who you talk to, he's been shooting up drugs since 1968. Fed Chairman Bernanke is doing the right treatment but this is his first time and there are no dosing charts to help guide him. At least in medicine, we have the experience of having treated millions of drug addicts. This is the Fed's first and only patient at this grand a scale because the world trades on the USD for now. Sigh. The only way this winding down method (printing out more USDs and injecting it into the economy) is going to work is if the Fed actually listens to and "measures" investor concerns and looks to see if Americans are actually producing physical goods with the bail out money. They can't just look at jobs and unemployment levels because numbers can be incredibly deceiving. That is how they can tell if they are giving too much medication. The price in gold won't tell them everything.
Another way of looking at the world's financial mess is imagining that the Fed is performing open heart surgery for the first time. Can you imagine? Uncle Sam on the operating table and surgeon Fed Bernanke leaning over him to turn the page for "Open Heart Surgery for Beginners" with his scalpel?
Then, if you're into health care reform, you'll notice that the machine that is being used to keep the blood pumping back into Uncle Sam's body has sprung a leak! If you look at who the manufacturer of the pump is, it says Medicaid and Medicare. Then if you look at where all of Uncle Sam's blood is pooling, you'll notice that Fed Bernanke and his entire surgical team is walking around and standing in it! If you look even closer you'll notice that one of the surgeons is trying to clean up the mess by using and abusing a small sponge called "primary care providers" by squeezing what little blood that's in it back into Uncle Sam even though there is the "insurance company" janitor who makes more money than the surgeons that could help out. The janitor doesn't help out because he gets paid so much he doesn't need to anymore and so now he is wooing the nursing staff called National Association of Insurance Commissioners with his new money.
But it's okay for now because Uncle Sam is getting a blood donation from the anemic European guy next door who is about to die anyways. However, in the wings is a guy waiting to infuse an incompatible blood type into Uncle Sam which is in the form of gold.
Ye-ah. To say investors are scared is an understatement. Sigh.
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