The Fed Illustrated

The Big Picture points us to an eye-opening chart by Bill King that illustrates the extent of borrowing by financial institutions at the Fed Discount Window.

Note how the rush for cash from Bernanke and Co. literally dwarfs the S&L crisis from the 80s, and appears to be on its way to doubling the infusion of cash that the fed released after 9/11 to keep the American economy on track.

So we're headed to more inflation, right? Well, that's an interesting debate, and an upcoming post I have planned will take a look at the arguments between the inflationists and the deflationists.

Which, to be honest, I find far more interesting and relevant than almost anything the presidential candidates are saying at the moment.