MAD MONEY

"Many Americans mistakenly believe the trillions of dollars to pay for Obama's unprecedented and historic government intervention, entitlements and social welfare is securely stashed away in a big safe somewhere in Washington. There is no vault and there is no cash; there is only "vapor paper" being created out of thin air.

Mr. Obama's government seems to think they can solve our debt problem by creating more debt. Monetizing government debt is what third world countries do. Today in Zimbabwe, for example, the government has printed so much money that the smallest denomination bill you can own is $1 billion - enough to buy a single loaf of bread!

China, the largest buyer of U.S. Treasury Bills, has already fired a shot across our bow. The Peoples Central Bank of China recently said "policy mistakes made by some central banks may bring inflation to the whole world" and "major currency devaluations may arise".

They are clearly worried their large holdings of U.S. dollars and Treasury Bills are about to get massively devalued. The scary thing is they are right."

-- RICHARD RAHN, Senior Fellow, Cato Institute