Ben’s got POMO Fever, Tim’s got POMO Fever
They’ve got POMO fever, what a scam
Ben’s gone buying crazy, Tim’s budget plan is hazy
Debasing Dollars baby, that’s the plan!
Actually, what this whole thing reminds me of it more of a scene from Jungle Fever where Samuel Jackson (Timmy), who is a proud crackhead needing a fix, corners his successful brother (Ben) in a park and says:
Tim (dancing): I’m a little light. Could you let me hold some change?
Ben: No. No, Timmy. That dancing shit ain’t gonna work. I ain’t giving you a red cent.
Tim: What? Come on, you can do me this one solid. Would you rather I go out and rob some elderly person? (raid the lock-box)
Ben: Steal?
Tim: Either way, I’m gonna get high. I hate to resort to knocking elderly people in the head for their money. But I’ll do it. I’ll do it. You know I’ll do it. I like getting high. ‘Cause I’m a… crackhead – I like to get high!
And of course Ben chooses the lesser of two evils and gives his brother enough money to get another fix but he knows he’ll be back tomorrow to do his little dance again. That’s exactly what’s going on in America these days as the Fed issues debt at a rate (as of October) of $140Bn PER MONTH and Ben does his best to match it by buying up notes and other toxic assets at a rate of $110Bn PER MONTH.
We’ve discussed POMO a great deal on the site so I won’t get into it here. Suffice to say it’s very much like when Wesley Snipes hands Sam Jackson money except, in this case Bernanke (Snipes) doesn’t have any money either – he’s just writing checks and backing them with the crack that his brother Timmy (Jackson) buys. Unfortunately, just like the Treasury debt, Sam Jackson consumes the crack and there’s not really an asset there at all – just another day and the need for another handout that will never be repaid.
Very much unlike Wesley Snipes (who, ironically, was convicted for tax evasion), Bernanke does not cut his brother Timmy off. In fact, yesterday, Brother Ben rolled out the new POMO schedule and, rather than $2.5Bn twice a week…
