I just read a story on the AP newswire about the Federal Reserve auctioning off more Treasury Securities to help the poor, troubled Wall Street ”financial institutions.”  You can read the full story here. Pay close attention to these two quotes:

“In exchange for the 28-day loan of Treasury securities, bidding firms can put up more risky investments, including certain shunned mortgage-backed securities, as collateral.”

and this one:

“In the four auctions held so far, the Fed has provided close to $158.95 billion worth of the Treasury securities to investment firms.”

In essence, the Fed is creating another $75 billion out of thin air to exchange for worthless structured finance, toxic, derivatives crap paper. Add that to the $158+ billion so far, and we are already at the point of over a quarter-trillion dollars in bailout money.

I’ve said it already, but I’ll say it again: this is going to cost over one trillion dollars. And who is going to get that one trillion? Well, the very same people who created the mess to begin with. Instead of prosecuting them for all their white collar crime, the Fed & the government are going to reward them by giving them a trillion dollars of freshly created money.

All of this newly created money that keeps getting injected into the system is going to dilute the value of the American Dollar. Get ready for $6/gallon gasoline. It is coming quickly. And get ready for a doubling of food costs.

Of course, neither will show up in the CPI “inflation” index, because volatile food and energy costs are not part of the “core” inflation rate. As if you and I don’t need food and gasoline in our daily struggle to survive.

As a country we need to demand honest accounting from our government, and demand honest money as well - not money that can be constantly diluted by a bunch of wealthy, fat-cat, elitist bankers for their own personal benefit.