Bubbles mentality

In somehow, the economist of the authority had always been failed to escape bubbles mentality in their mind. This bubbling mentality among them couldn't think something better except to inject millions or even billions money into the economy. With the current financial system that promotes credit plus interest, injecting money through bonds and securities issuance can always make economic conditions become worse. Issuing them (bonds and securities) means borrowing money from the rest of the world and again to pay back is not an easy. In reality, it's never been paid, thus creating bubbles in economy.

Not few economists realizing this phenomena that so called disaster. John Turk and other commentators condemned the action of Federal Reserve about this trend of money's injections. I was interested while reading their comments in this issue.

Den Denning said about this "When the Treasury issues bonds, it's borrowing money from the world's savers. That crowds out private investment, but is not really money printing. True, it steals from future income and sends interest and principal payments to bondholders outside the U.S. But that is a kind of monetary time travel, rather than monetary alchemy.If the Fed, on the other hand, moves to keep a lid on Treasury yields by buying them in the open market, it will likely do so with money in wishes into existence. There's no place like credit! And don't think this will go unnoticed by the precious metals gang loitering on the corner, and its leader, Gold. Here's a prediction for you: gold and its precious metals brothers in arms (silver, platinum, and palladium) will absolutely ambush the dollar this year if things keep playing out the way they are."