Good evening from Washington, I’m Still reporting on the economy.

Boy oh boy, hot money has been flying out of central banks at an unprecedented rate in a desperate attempt to prevent a massive market meltdown. Will it work? Maybe, but not for long.

Yesterday, Bloomberg provided 4 conflicting numbers for the amount of money just issued by the European Central Bank, the ECB. At 6:30 am, they reported that European markets were rising because the ECB had announced that they intended to lend over 500 billion Euros to the banks, which was more than the 400 billion expected.

Then, by 7 am, that number changed to 600 billion Euros. The next report – about 2 minutes later – stated that the number was 3/4 of a trillion Euros. One would hope that such a big number would be known with more precision, but noooo.

But when you actually understand what’s going on, it gets even more frightening.

The European banks are taking their new money and then depositing it right back into the hands of the ECB to use as reserves so that they can then multiply it by a factor of 50 to buy what??? Bonds of the troubled European nations. These bonds are nothing but more debt owed by the very troubled nations that are already underwater in debt.

So this is a shell game – a horrendous ponzi scheme that will soon implode leaving much of Europe devastated.

But wait, wait, it still gets worse. In order to keep Europe from looking like the hyperinflation monster it really is, the Bank of England just pumped new hot money into their system – a mere 50 billion British pounds.

So why am I calling this “hot money”? Because injections of cash into commercial banks by central banks ALWAYS, ALWAYS boosts the stock market sto artificially high levels – and, I might add – ALWAYS leads to yet another bust when the injections stop – as they must as inflation begins to run away – as IT MUST.

But it gets worse, still. China, during the same period announced that it will be inflating its money supply as well. The idea is if all stock markets rise at once, the unknowing public won’t realize what’s really going on until it’s too late.

Of course, ever-rising stock markets is great for President Obama’s re-election chances – in fact, if they can maintain the hot money spiral, he’s a lock at this point.

But experts like Market Ticker guy, Karl Denninger, know that this can’t go on forever. So, it’s not IF the crash will come, it’s WHEN.

European nations – all nations — are addicted to borrowing from banks – addicted to living far beyond their means. That’s why I frequently point out that this debt money system which is strangling the economy of every nation is THE leading cause of most of the world’s hunger, poverty, misery and disease. Monetary reform is the new human rights movement.

It’s no wonder the average person is confused. When the media won’t sound the alarm, and the politicians are either too bought, or too confused to tell the truth to the public, no wonder everyone is completely confused.

Perhaps the worst example of a confused politician is Libertarian front-runner Gov. Gary Johnson. At the Florida Libertarian convention 3 weeks ago, Johnson admitted to Karl Denninger that he just didn’t understand the economy or the money issue. But that doesn’t keep him from opining on both at Libertarian Presidential debates.

Incredibly, last Friday, Johnson said on the Butler on Business radio show in Atlanta that borrowing is good.

“It’s one thing to borrow money, which is an OK phenomenon; but it’s another thing to print money and what we need to do is to stop printing money. So I’m promising to submit a balanced budget to Congress in the year 2013. Now that’s not promising a balanced budget because Congress is going to have to go along with that.”

Hmmmm, so it’s ok for the government to borrow, eh? And so obviously you’re not going to do anything about the ever-growing interest payments on the National Debt, which this year will exceed the entire discretionary budget of Congress — $550 billion. But he probably misspoke, right? RIGHT???

“Borrowing is ok. Printing money; that’s what we need to stop.”

Really, really unbelievable! Gov. Johnson, please read my book, “No More National Debt” wherein you’d find that we are not “printing” money. Every time the national debt limit is raised, we are actually going out and borrowing EVERY DOLLAR of that debt limit increase. It is absolutely shocking that Johnson understands so little about the American money system.

Johnson is pretty conflicted when it comes to borrowing and debt:

“I think we all really want to help those truly in need, but I think we’ve gone way beyond that and let’s live within our means.”

Oh really? There is only one candidate in the Libertarian race who is not living within his means, and that is Gov. Johnson. He is spending money like there is no tomorrow in his quest to gain the Libertarian nomination. But still worse, according to his Jan. 31 Federal Election Commission report, the Johnson campaign was over $200,000 in debt.

“I think we all really want to help those truly in need, but I think we’ve gone way beyond that and let’s live within our means.”

Yes, we do, Governor. I’m sure your lack of frugality is starting to sink in with Libertarians. And so what does Johnson think about the Fed?

“I would abolish the Federal Reserve if given the opportunity, but as you all know, abolishing the Fed is not the end-all. The Treasury would still print money. They would have to. They printed money before there was a central bank when other countries without a central bank print money….”

Huh? Gary, the only money the U.S. government creates is coins. That’s it; less than 1% of the money supply. With the exception of the Fed’s 2 rounds of QE, all money is created by commercial banks as interest bearing debts. But wrong-way Johnson wasn’t done yet:

“We own the Federal Reserve. There is this misconception that the Federal Reserve is some private entity. But if I might give an analogy here, we – U.S. taxpayers – own all the stock in the Federal Reserve.”

This is so not true, Gary, and every Libertarian knows it. Numerous Federal Court decisions have all held that the Fed is NOT a part of the U.S. government. The latest was in 1982 in Lewis v. United States, where the U.S. Court of Appeals for the 9th Circuit stated:

“The Reserve Banks are not federal instrumentalities … but are independent, privately owned and locally controlled corporations.”

Also, the government owns zero stock in the Fed, All stock is owned by the member COMMERCIAL banks, and every Libertarian knows that as well. You aren’t talking to your usual audience of the Republican uninformed, Gary.

Governor Johnson is good at bluffing his way through subjects just like every rich politician. This is just the opposite of what Libertarianism stands for. Economic policy is just too critical in this election to hand the keys over to someone who knows so little — and that which he does say is sooooo wrong.

This coming weekend, March 2-4, I’ll be at the California Libertarian State Convention in Ventura, California at the Holiday Inn Crowne Plaza, 450 East Harbor Blvd. 93001. Come on out and register as a Libertarian on Sunday. The Presidential Straw Poll will be some time on Sunday. I’d appreciate your vote.

And remember, we still need money. We don’t have enough to make it all the way to the National Convention held this year in Las Vegas on May 4 & 5. Please go to http://www.Still2012.com/ and hit the Donate button and give what you can. That’s all we ask.

I’m Still reporting on the economy. Good evening.