Digging a hole to China

Senate Banking Committee Chairman Christopher Dodd is moving to allow the Federal Deposit Insurance Corp. to temporarily borrow as much as $500 billion from the Treasury Department.

via Bill Seeks to Let FDIC Borrow up to $500 Billion – WSJ.com.

A half a trillion here, and half a trillion there, and pretty soon we’re talking about real money.  Borrowed from the federal government which …uh… borrowed it from someone else.

I’m no economist, but at some point don’t there have to be some real assets existing somewhere and not just IOUs?

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