THE AGE OF PYRAMIDS

Following up a bit from yesterday's discussion, as the latest Federal Open Market Committee continues, the Fed is apparently wondering what to do (since it can't lower interest rates that are already at or essentially at zero, and it clearly sees "do nothing" as a non-option). Among the options it's bouncing around:

* hold its lending rate between zero and 0.25 percent for the rest of this year and for most -- if not all of -- next year

* buying long-term Treasury securities

* boost its purchases of debt issued or guaranteed by mortgage giants Fannie Mae and Freddie Mac

* spur lending for auto, education, credit card and other consumer loans. The Fed later this month will start providing up to $200 billion in financing to investors to buy up such debt

As Applesaucer explained so eloquently in yesterday's comments, all of these options amount -- in the end -- to nothing other than the creation of "money" from thin air. Some destroy the Fed's balance sheet more than others. Some "stimulate" the GDP more than others, but in the end they devalue the currency, and add nothing of value to the economy. If the government decrees today that at the snap of the finger everyone now has twice as many dollars as he had when he woke this morning you're not one cent richer.

But debtors -- including, of course, the U.S. Treasury and the Federal Reserve -- can pay their obligations in the watered-down currency that creditors (including you, as a holder of Federal Reseve Notes, also known as dollar bills) are legally required to accept as "tender for all debts, public and private."

Whatever the FOMC decides today, or in the near future, remember that they're just figuring out the best way to perpetuate the ponzi scheme. And robbing you blind in the process.