Bill Bonner at The Daily Reckoning is suffering from self-diagnosed “senselessness overload.” “The absurdities are coming too fast for us now,” says Bill. “We fear we are going into an irony-induced coma.” For a start, nowhere in the US Constitution does it give the Fed the power to put each and every taxpayer on the line for about $2,000.

Leave it to Congress to use “Christmas tree” as a verb…everyone is getting in on the act on the Hill. Why is everyone so sure that the people who made this mess will be able to clean it up. One person had something smart to say this week - and who it is may surprise you…and more!

Hank Paulson’s bailout strategy will almost certainly cost $1 trillion or more. Bloomberg reports it will increase national debt by 6.6% to $11.3 trillion. Bill Bonner says US policy makers will eventually have no choice but to inflate away this debt. And this is when physical gold becomes worth much more than paper money… and even gold ETFs

Ben Bernanke and Hank Paulson are planning the biggest bailout of financial markets in history. It could cost the taxpayer somewhere in the region of $1 trillion. But the market will triumph over the interventionists, says Bill Bonner.

The biggest credit bubble in history is due a correction, and there is little the Fed or Treasury can do to stop it. The more they try, the more money they have to print.

This makes the outlook for the dollar and US Treasury bonds ever more perilous… and the outlook for gold ever more attractive.

The Daily Reckoning’s Bill Bonner says the Fed’s bailout strategy is eerily reminiscent of Japan’s response to its own financial crisis in the ’90s. In Japan’s case, massive government intervention simply dragged out the country’s correction; 18 years on and Japanese stocks are still way below the pre-crash levels. Bill says the US could be looking at the same fate…