Stop listening to all the propaganda about the debt. It's WRONG!

In 2008 the deficit was $450 bln and the national debt was $9 trillion. The dollar index hit a low of 70.68.

This year the deficit is forecast to hit $1.6 trillion and the national debt is $14.5 trillion. The dollar index is at 74.57. THE DOLLAR WENT UP!!!!!!!!!!!

The growth of the debt/deficit had ZERO impact on the dollar. It went UP!
Interest rates on 10 year Treasuries went from 4.0% then, to 2.1% now!

Stop listening to the propaganda about the debt. The facts above PROVE that all the hysteria is WRONG. The growth in the debt is NOT inflationary, it’s NOT debasing the dollar, it’s NOT causing interest rates to skyrocket. All of that IS bulls—t!!!!!

Let's end the "money printing, dollar debasing" argument once and for all.

This is going around a lot. It’s this ridiculous false notion that the Fed is printing money and that it has “debased” the dollar.

First of all, the Fed has NO ABILITY TO CREATE NEW MONEY. Only the government can do that via spending. The Fed can only affect the DURATION and COMPOSITION of financial assets held by the private sector. PERIOD!!

Now, on this point that the Fed “money printing” (NOT) has caused the value of the dollar to decline, let’s look at the facts.

Below I give you the US Dollar Index and the size of the Fed’s balance sheet.

Date                 Dollar Index Value             Fed’s Balance Sheet
3/14/2008            71.66                                        $921 bln
7/13/2011            75.24                                        $2.9 TRILLION!

So, here are the FACTS…over the past three years the Fed expanded its balance sheet by $2 TRILLION and the dollar went UP!!!!!!!!!!!!!!!!!!!!!!!!!

The lesson here: DON’T LISTEN TO THESE IDIOTS ON CNBC AND FOX OR ANYWHERE ELSE IN THE MEDIA!!!!!!!!!!!!