Here Is Why The Dollar Is Now Effectively Worthless
Submitted by Tyler Durden from: 'ZERO Hedge' on 11/23/2009 10:27 -0500A picture is worth a thousand Krugman essays, which is why we present a chart comparing the US Monetary Base (and by subtracting Reserve Balances with Fed Reserve Banks, Currency in Circulation), and the Fed's holdings of MBS and Agency paper (worthless GSE/FHA garbage). In summary: Currency in Circulation: $920 billion; MBS/Agency Holdings: $997 billion. The dollar in your pocket is now entirely backed only by worthless, rapidly devaluing and subsidized housing.
Click on the Chart for a full sized view.