The United States Treasury announced today that it will supplement funding to the Federal Reserve in order to shore up the central bank’s balance sheet. The Treasury said that the Federal Reserve requested the additional funding as they have gone through all their balance sheet assets trying to save the U.S. financial system.

In plain English this announcement by the Treasury means the Federal Reserve has run out of financial ammunition and as a result will start printing Federal Reserve Notes in order to buy the Treasury bills in order to fund its balance sheet. This also means this financial crisis is far from over as the Fed feels it needs to shore up its balance sheet.

Is it any wonder gold is up over $80 on the day as Ben Bernake crosses over the Rubicon in his helicopter?