When the US government proposes to invest in the banks you really know the system is broken. It's apparent that state ownership will continue.

When Paulson uses the word invest he means stability will be created with more fiat dollar bills, IOU's. As Antal Fekete has generally stated, the only way an injection into the banks for stability is to put gold into the banks, not more fiat money.

Paulson also says that any new bank debt will be guaranteed for three years? What will they give the public as a guarantee? More depreciating fiat currency or Treasury instruments that will be restrcted in some manner to benefit them?

What is concerning is the use of the word guarantee. In addition, Paulson says that the government will guarantee unlimited amounts deposited to banks that carry no interest.

And the term, public money. What's this supposed to mean? Everyone is in debt and the government more than any entiity. I guess it comes down to one's definition of money.

Somewhere along in time the Treasury's roaring paper party will just run out of punch and everyone will go home poorer than when they first arrived.

The following is a quote from H.A. Scott Trask from his 2004 article entitled, "Inflation And The French Revolution: The Story Of A Monetary Collapse:"

"Whenever a government promises not to use a power they wish to exercise, or have just acquired, by way of assuaging the fears of those who anticipate abuse, they are sure to break that promise whenever it becomes convenient or they believe they can get away with it. Only fools or ignoramuses ever trust the word of government officials or politicians."