Electronic Dollars are the New Gold. For the past hundred years the United States has been generously supplying the world with Dollars. Most (about 99%) have been electronic dollars. These dollars are held on bank accounts all around the world and (since they are not held by the FED) we pay interest payments to the institutions and countries that hold them. I have been telling people how this system works and none of you seem capable of understanding it. It is a wonderful system. When the United States Congress spends too much money (as they usually have during the past century) they tell the Treasury to print Bonds to fund the indebtedness. The Treasury usually eagerly does that because that is what they know how to do very well. When sales of the Bonds are sluggish, the FED steps in and buys the issuance to keep the price up. As long as the FED is willing to buy, the price stays up. When the FED buys, it usually sells the bonds on the global market on a gradual basis, thus "Monetizing" the Debt. Monetizing the Debt is extremely important because by that process, we get the institutions and governments of the world in a position where they are responsible for protecting their investment. THUS THEY GO OUT OF THEIR WAY TO PROP UP THE DOLLAR! AMEN! HALLELUIA! THANK YOU JESUS! As I have pointed out in previous posts, once you get them holding TRILLIONS of Dollars, it becomes the new GOLD. Electronic Money does not weigh anything, so it is a hell of a lot more convenient to use in transactions than paper money or silver or gold. Can you imagine the stupidity of a transaction where the two parties (say in the US and China) exchange a TRILLION dollars worth of Gold? How many ships would it take to transfer a TRILLION DOLLARS WORTH OF GOLD BARS? YOU could exchange the same amount of electronic money in a second. The gold would cost Billions of dollars to insure as it is hauled around the world and millions of dollars to actually ship, and millions of dollars to guard..... Simply not practical at all. Use Gold for Jewelry and Electronic money for transactions between China and the United States or other countries. Now, how about Electronic Dollars? Remember, the United States is the leading manufacturing, natural resource producing, and agricultural exporting country in the world. If the countries holding the Electronic Dollars (as Bonds and Notes in their banks) wanted to try to sell it right away they could momentarily force the value of the dollar down, but that would be the most frightening prospect that they could ever face. Remember if the Dollar goes down in value, American Products become less expensive in the international market. Americans would go to work producing more and more product, our balance of trade problems would be quickly dissolved, and all would be right in America where we would have 100 percent employment. You can clearly see why the other countries of the world will not let the dollar fall in value because that would bring massive unemployment to their economies. No, they have only one choice and that is to keep the American Dollar UP IN VALUE! So, for two reasons the countries and institutions that are holding the dollar and competing with the United States NEED TO SUPPORT THE DOLLAR VALUE. QUITE FRANKLY WE HAVE THE WORLD BENT OVER A BARREL AND WE ARE BUGGERING THE WHOLE LOT OF THEM! THINK ABOUT IT. THAT IS THE PRESENT REALITY AND IT IS GLORIOUS. THIS ALL CAME ABOUT BECAUSE OF THE FED. JUST THINK OF THE GENIUS THAT CREATED THAT INSTITUTION! AMEN! HALLELUIA! THANK YOU JESUS!