[87] News from Absurdistan - Easy Money, Easier Than Ever

RedStateEclectic has this important observation to offer:

From Bloomberg.com, an arcane article which is actually HUGE news, and even though they explain it as though it were impossible to understand, which it isn't.

Bottom line: The federal reserve is going to start allowing banks to directly borrow from the Federal Reserve through the discount window instead of borrowing from each other(because the banks will not lend to each other FOR FEAR OF BANKRUPTCY!.)The inability of the banks to lend to each other is the central problem right now. They don't trust each other one bit. So in comes the Federal Reserve with a "handful of credit card applications" and a sweetheart of a deal. "Hey, big boy, BORROW THE MONEY DIRECTLY FROM US AT ONLY a 1/4 of a percent penalty (usually its a FULL PERCENTAGE POINT) and you can have all the liquidity you want."

IT'S DIRECT, BAREFACED INFLATION!! They aren't even going to bother trying to hide the inflation anymore. They'll just start printing the money AND DROPPING IT FROM HELICOPTERS... Hence the term "Helicopter Ben" - (Ben Bernanke was quoted as saying this before he became Fed Chair.) Ay carumba. No me gusta.