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2 sentence lesson in economics

The recent moves by the US Federal Reserve in the months following the credit market seizure of August 2007 to inject liquidity into a failed credit market and to bail out distressed banks and brokerage houses that had been caught holding securities of dubious market value are looking more like fixes for drug addicts in advanced stages of abuse.
So far, many of the Fed's actions taken to deal with the credit crisis have been self neutralizing, such as pushing down short-term interest rates to try to save wayward institutions addicted to fantastic returns from highly leveraged speculation, only to cause the dollar to free fall, thus causing dollar interest rates and commodity prices, including food and energy, to rise. Henry Liu, Asia times Online, 4/1/2008 http://www.atimes.com/atimes/Global_Economy/JD02Dj03.html


In the common use of the term, the US is already bankrupt and living off its credit cards (cheap credit from China/Japan). But how can a "company" become bankrupt if they can print their own money?

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