Maybe you are thinking that all the money thrown at the economic crisis has to have put the economy in gear by now so the urgency of taking shelter in gold coin investments has passed.

April 18, 2011 – Maybe you are thinking that all the money thrown at the economic crisis has to have put the economy in gear by now so the urgency of taking shelter in gold coin investments has passed. If the money were wisely spent, perhaps that might be true. But huge sums of the trillions in bailout cash ended up abroad, just making matters worse.

Under edict from Congress the Fed has cracked its books open just a hair, and the tiny bit of light shed on its dealings reveals a lot about why things are going the way they are. Matt Taibbi gives us a taste in his Rolling Stone article, “Why isn’t Wall Street in Jail?”

Some of those transactions just leave you scratching your head, “like the Fed’s massive purchases of securities in foreign automakers, including BMW, Volkswagen, Honda, Mitsubishi and Nissan. Or the nearly $5 billion in cheap credit the Fed extended to Toyota and Mitsubishi.” Although one could argue that those companies have interests here, giving the competition cheap cash at the same time we were trying to bail out Chrysler and GM is insane.

And while we were struggling to regain our feet, what possible sense did it make to fork over $9.6 billion to the Bank of Mexico? More sense, I suppose than to shovel $2.2 billion into “the Korea Development Bank … whose sole purpose is to promote development in South Korea.” And no where near as questionable as “$35 billion in loans to the Arab Banking Corporation of Bahrain at interest rates as low as one quarter of one point.”

That bank, it turns out, has a most interesting connection to our good friend Qaddafi – Libya hold a 59% interest in the bank. To add insult to injury, the treasury has exempted the bank from having its assets frozen by economic sanction.

Even money handed over to companies affiliated with American firms went offshore. Hundreds of millions of bailout money passed through the hands of the likes of Pimco and Blackstone straight into Cayman Island accounts where they were sheltered from US taxes.

A whole lot of money that the Fed invented ended up where it didn’t do our economy one lick of good. If you are looking for positive results from the stimulus, you might want to move abroad. If you are sticking it out here, you definitely want to convert all the cash you can into gold coins.

Kevin Johnson

Senior Staff Writer – GoldCoin.net