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By Chris Geo on Sep 20, 2012 with Comments
QE3 Blowing Up the Debt Bubble
James Hall, Contributor
Activist Post
It begins . . . the latest downgrade of credit worthiness for the former titan reserve currency. As reality strikes, financial confidence goes negative. Forget the pump-and-dump equity markets, just how long will it be before the bondholders demand higher interest rates to cover their risk? Ben Shalom Bernanke answers this concern with intentions to keep rates near zero. Pure escapism out of the strange world of banksters’ hubris – faces the rating agencies. US Credit Rating Cut by Egan-Jones … Again
Ratings firm Egan-Jones cut its credit rating on the U.S. government to ‘AA-’ from ‘AA,’ citing its opinion that quantitative easing from the Federal Reserve would hurt the U.S. economy and the country’s credit quality.
The Fed on Thursday said it would pump $40 billion into the U.S. economy each month until it saw a sustained upturn in the weak jobs market.
Step back and view the big historic picture. The lesson from the Roman Empire repeats with a vengeance . . . in the era of digital bookkeeping.
Yet the “bread and circus”, food stamps and sports arena society shares the same fate. Appropriately, the Cato Institute describes the pattern to destruction, in How Excessive Government Killed Ancient Rome.
The revenues of the state remained inadequate to maintain the national defense. This led to further tax increases, such as the increase in the sales tax from 1 percent to 4.5 percent in 444 A.D. (Bernardi 1970: 75). However, state revenues continued to shrink, as taxpayers invested increasing amounts of time, effort and money in tax evasion schemes. Thus even as tax rates rose, tax revenues fell, hastening the decline of the Roman state (Bernardi 1970: 81-3). In short, taxpayers evaded taxation by withdrawing from society altogether. Large, powerful landowners, able to avoid taxation through legal or illegal means, began to organize small communities around them. Small landowners, crushed into bankruptcy by the heavy burden of taxation, threw themselves at the mercy of the large landowners, signing on as tenants or even as slaves.
The open-ended wizardry of originating imaginary money at the taxpayers’ expense is an alchemy that the central bankers aspire with all the zeal of a bandit that wants to steal from the unborn.
Judge Napolitano Exposes Secrets of the Fed on Fox
The Trouble with Printing Money
Chris Martenson
peakprosperity.com
For a while now, I have been expecting a coordinated, global central bank action that would seek to print more money out of thin air, or “QE” (quantitative easing), as it is now called. Now we have two of the most important central banks, that of the U.S. (the Federal Reserve) and in Europe (the ECB) having committed to open-ended, limitless QE.
In Part I of this report, we analyze the actions themselves, and then in Part II we discuss the implications to individuals and those with responsibilities to manage money.
The most recent announcement came from the Fed, and it had these features:
The Federal Reserve Is Systematically Destroying Social Security And The Retirement Plans Of Millions Of Americans
By Michael Snyder
theintelhub.com
Contributed by The Economic Collapse Blog
Last week the mainstream media hailed QE3 as the “quick fix” that the U.S. economy desperately needs, but the truth is that the policies that the Federal Reserve is pursuing are going to be absolutely devastating for our senior citizens.
By keeping interest rates at exceptionally low levels, the Federal Reserve is absolutely crushing savers and is systematically destroying Social Security.
Meanwhile, the inflation that QE3 will cause is going to be absolutely crippling for the millions upon millions of retired Americans that are on a fixed income. Sadly, most elderly Americans have no idea what the Federal Reserve is doing to their financial futures.
Most Americans that are approaching retirement age have not adequately saved for retirement, and the Social Security system that they are depending on is going to completely and totally collapse in the coming years.
Right now, approximately 56 million Americans are collecting Social Security benefits. By 2035, that number is projected to grow to a whopping 91 million.
By law, the Social Security trust fund must be invested in U.S. government securities. But thanks to the low interest rate policies of the Federal Reserve, the average interest rate on those securities just keeps dropping and dropping.
The trustees of the Social Security system had projected that the Social Security trust fund would be completely gone by 2033, but because of the Fed policy of keeping interest rates exceptionally low for the foreseeable future it is now being projected by some analysts that Social Security will be bankrupt by 2023.
Overall, the Social Security system is facing a 134 trillion dollar shortfall over the next 75 years. Yes, you read that correctly. The collapse of Social Security is inevitable, and the foolish policies of the Federal Reserve are going to make that collapse happen much more rapidly.
The only way that the Social Security system is going to be able to stay solvent is for the Social Security trust fund to earn a healthy level of interest.
By law, all money deposited in the Social Security trust fund must be invested in U.S. government securities. The following is from the official website of the Social Security Administration….
By law, income to the trust funds must be invested, on a daily basis, in securities guaranteed as to both principal and interest by the Federal government. All securities held by the trust funds are “special issues” of the United States Treasury. Such securities are available only to the trust funds.
In the past, the trust funds have held marketable Treasury securities, which are available to the general public. Unlike marketable securities, special issues can be redeemed at any time at face value. Marketable securities are subject to the forces of the open market and may suffer a loss, or enjoy a gain, if sold before maturity. Investment in special issues gives the trust funds the same flexibility as holding cash.
So in order for the Social Security Ponzi scheme to work, those investments in government securities need to produce healthy returns.
Unfortunately, the ultra-low interest rate policy of the Federal Reserve is making this impossible.
The average rate of interest earned by the Social Security trust fund has declined from 6.1 percent in January 2003 to 3.9 percent today, and it is going to continue to go even lower as long as the Fed continues to keep interest rates super low.
A recent article by Bruce Krasting detailed how this works. Just check out the following example….
$135 billion of old bonds matured this year. This money was rolled over into new bonds with a yield of only 1.375%. The average yield on the maturing securities was 5.64%. The drop in yield on the new securities lowers SSA’s income by $5.7B annually. Over the fifteen year term of the investments, that comes to a lumpy $86 billion.
So what happens when the Social Security trust fund runs dry?
As Bruce Krasting also noted, all Social Security payments would immediately be cut by 25 percent…..
Anyone who is 55 or older should be worried about this. Based on current law, all SS benefit payments must be cut by (approximately) 25% when the TF is exhausted. This will affect 72 million people. The economic consequences will be severe.
In other words, it would be a complete and total nightmare.
Sadly, the truth is that the Social Security trust fund might not even make it into the next decade. Most Social Security trust fund projections assume that there will be no recessions and that there will be a very healthy rate of growth for the U.S. economy over the next decade.
So what happens if we have another major recession or worse?
And most Americans know that something is up with Social Security. According to a Gallup survey, 67 percent of all Americans believe that there will be a Social Security crisis within 10 years.
Part of the problem is that there are way too many people retiring and not nearly enough workers to support them.
Back in 1950, each retiree’s Social Security benefit was paid for by 16 U.S. workers. But now things are much different. According to new data from the U.S. Bureau of Labor Statistics, there are now only 1.75 full-time private sector workers for each person that is receiving Social Security benefits in the United States.
And remember, the number of Americans drawing on Social Security will increase by another 35 million by the year 2035.
Another factor that is rapidly becoming a major problem is the growth of the Social Security disability program.
Since 2008, 3.6 million more Americans have been added to the rolls of the Social Security disability insurance program.
Today, more than 8.7 million Americans are collecting Social Security disability payments.
So how does this compare to the past?
Back in August 1967, there were approximately 65 workers for each American that was collecting Social Security disability payments.
Today, there are only 16.2 workers for each American that is collecting Social Security disability payments.
The Social Security Ponzi scheme is rapidly approaching a crisis point.
Sadly, the Federal Reserve has made it incredibly difficult to save for your own retirement.
Millions upon millions of Baby Boomers that diligently saved money for retirement are finding that their savings accounts are paying out next to nothing thanks to the ultra-low interest rate policies of the Federal Reserve.
The following is one example of how the low interest rate policies of the Fed have completely devastated the retirement plans of many elderly Americans….
You can understand the impact of the invisible tax on the elderly by watching the decline of interest income from $50,000 invested in a five-year Treasury obligation. As recently as 2000, this would have yielded about 6.15 percent and an interest income of $3,075 a year. Now the same obligation is yielding 0.7 percent and an interest income of $350 a year. This is the lowest yield on this maturity of Treasury debt since the Federal Reserve started keeping an index of the yields in 1953.
But it’s more than a low interest rate. It’s an income decline of nearly 89 percent in just 12 years.
And after you account for inflation, those that put money into savings accounts today are actually losing money.
Of course most Americans have not saved up much money for retirement anyway. According to the Employee Benefit Research Institute, 46 percent of all American workers have less than $10,000 saved for retirement, and 29 percent of all American workers have less than $1,000 saved for retirement.
Overall, a study conducted by Boston College’s Center for Retirement Research discovered that American workers are $6.6 trillion short of what they need to retire comfortably.
So needless to say, we have a major problem.
Baby Boomers are just starting to retire and the Social Security system is still solvent at the moment, and yet the number of elderly Americans that are experiencing financial problems is already soaring.
For example, between 1991 and 2007 the number of Americans between the ages of 65 and 74 that filed for bankruptcy rose by a staggering 178 percent.
Also, at this point one out of every six elderly Americans is already living below the federal poverty line.
So how bad are things going to be when Social Security collapses?
That is frightening to think about.
In the short-term, millions upon millions of retired Americans that are living on fixed incomes are going to be absolutely crushed by the inflation that QE3 is going to cause.
Just like we saw with QE1 and QE2, a lot of the money from QE3 is going to end up in agricultural commodities and oil. That means that retirees (and all the rest of us) are going to end up paying more for food at the supermarket and gasoline at the pump.
But those on fixed incomes are not going to see a corresponding increase in their incomes. That means that their standards of living will go down.
Things are tough for retirees right now, but they are going to get a lot tougher.
Right now, there are somewhere around 40 million senior citizens. By 2050 that number is projected to increase to 89 million.
So how will our society cope with more than twice as many senior citizens?
Sadly, we will likely never get to find out.
The truth is that our system is almost certainly going to totally collapse long before then.
We are rapidly approaching a financial crisis unlike anything we have ever seen before in U.S. history, and the foolish policies of the Federal Reserve just keep making things even worse.
Fed’s ‘QE-Infinity’ Will Push Gold Up to $2,400: Pro
John Melloy
CNBC
In one of the most bullish gold calls since the Federal Reserve announced a new round of easing last week, one strategist sees a 36 percent jump in the metal’s price, to $2,400 an ounce, by the end of 2014.
[...] “Given the new open-ended nature of QE3, the upward pressure on gold prices should continue until employment is strong enough to require a change in policy,” Blanch added. “In our view, this is unlikely to happen until the end of 2014.”
[...] Gold is up two percent since the Fed’s statement as others besides Bank of America pile into the metal on fear these actions may spark inflation and leave the metal as the only store of value in a world of paper currencies. Morgan Stanley also upped its gold forecast today, saying the metal would average about $1,800 an ounce next year.
Should We End the Fed?
QE3 Blowing Up the Debt Bubble
By James Hall
theintelhub.com
It begins . . . the latest downgrade of credit worthiness for the former titan reserve currency. As reality strikes, financial confidence goes negative.
Forget the pump and dump equity markets, just how long will it be before the bondholders demand higher interest rates to cover their risk?
Ben Shalom Bernanke answers this concern with intentions to keep rates near zero. Pure escapism out of the strange world of banksters’ hubris – faces the rating agencies. US Credit Rating Cut by Egan-Jones … Again
“Ratings firm Egan-Jones cut its credit rating on the U.S. government to “AA-” from “AA,” citing its opinion that quantitative easing from the Federal Reserve would hurt the U.S. economy and the country’s credit quality.
The Fed on Thursday said it would pump $40 billion into the U.S. economy each month until it saw a sustained upturn in the weak jobs market.”
Step back and view the big historic picture. The lesson from the Roman Empire repeats with a vengeance, in the era of digital bookkeeping. Yet the “bread and circus”, food stamps and sports arena society shares the same fate.
Appropriately, the Cato Institute describes the pattern to destruction, in How Excessive Government Killed Ancient Rome.
“The revenues of the state remained inadequate to maintain the national defense. This led to further tax increases, such as the increase in the sales tax from 1 percent to 4.5 percent in 444 A.D. (Bernardi 1970: 75). However, state revenues continued to shrink, as taxpayers invested increasing amounts of time, effort and money in tax evasion schemes.
Thus even as tax rates rose, tax revenues fell, hastening the decline of the Roman state (Bernardi 1970: 81-3). In short, taxpayers evaded taxation by withdrawing from society altogether. Large, powerful landowners, able to avoid taxation through legal or illegal means, began to organize small communities around them. Small landowners, crushed into bankruptcy by the heavy burden of taxation, threw themselves at the mercy of the large landowners, signing on as tenants or even as slaves.”
The open-ended wizardry of originating imaginary money at the taxpayers’ expense is an alchemy that the central bankers aspire with all the zeal of a bandit that wants to steal from the unborn. Bernanke is desperate to prop up the financial derivative madness.
Back in antiquity constrains of pilfering the treasury were not as refined as computer strokes on a spreadsheet.
The impact of Coin mintage collapsed the Roman Empire, looks mild to the forecast of pain to come to the abortive American Empire. While the pattern between both imperia uses contemporary techniques of their era, the outcome ensures the same destruction to their respective economies.
“Overtime the metal content of silver coins decreased until it was only around 4% of the ‘silver’ coin. So while for hundreds of years inflation was non-existent around 30 yrs after the silver content was reduced inflation rose at an average of 9% a yr.”
This unceasing and continuous explosion of the money supply and the monetization of the currency not only crosses the Rubicon, it ends in the assassination of the Republic. The rule of central bank Caesars begs for the collapse of the imperium. Bernanke’s delusion that Keynesian spending will produce a “sustained upturn in the weak jobs market” is pure lunacy.
The target and beneficiary of this money flow only enriches the insiders, who strive to establish a technocratic feudal dynasty. The merchant economy is under intense pressure and faces demise from the opulent excess. The routine ransacking of the economy by the elites, in union with the oversight of their minion bureaucrats, torture their compatriot brethren.
The intent of the Negotium series “provides a sensible and informative guide on the complexities of business, economics, finance and global commerce”.
Any discussion of the numerous topics always presupposes a reasonably stable currency. Currency debasement is historically destructive, points out the similarities that destroyed Rome and the modern day events that are emasculating the citizens of this republic into wards of the state or slaves to the national debt.
“At the end of the day currency debasement is simply another tax, albeit a tax which most people do not understand, and do not even know is being levied upon them.
While the Roman empire debased the currency by simply lowering the percentage of gold or silver in the currency, the American empire does so either by printing new money without any accompanying increase in production or by engaging in fractional reserve banking, via which banks lend out money that they do not have, being “insured” by the federal government.
Interestingly enough, the two governments seemed to use these practices for similar reasons. Caracalla needed to increase war spending, and thus debased the currency to do so.
The United States has done exactly the same thing throughout its history and especially the last 100 years, and today is attempting to fund an empire that consists of soldiers in over 140 countries worldwide and dozens of nations that are essentially economic dependents.”
Just how long the debt bubble can be expanded until it bursts, is proportionate to the servitude that the public is willing to endure. The day of financial reckoning approaches, while the percentage of taxation tribute increases. The average resident once had enough disposable earnings to live a decent life.
Now sufficient after tax income revenue, begs poverty level existence.
QE3 would be better characterized as the final solution to crash and destroy the American economy. The barbarians entered the provinces to rape and pillage Rome. Today the “masters of the universe” Goths are plundering the remaining wealth of the nation with their arbitrage supercomputers.
Ruining the value of the currency seems like a small price to pay, when you control or possess the bulk of the real assets.
The Attila the Hun tactics used by Bernanke’s Federal Reserve Board of Governors is the equivalent and true “SCOURGE OF GOD”.
The debt bubble is the instrument of the greatest wealth transfer in all of history. Soon the old saying; brother, can you spare a dime, will be on the lips of most; but you had better check the silver content.
This article originally appear on BATR
Max Keiser: Ultimate QE3 Meltdown
Max Keiser reveals the true financial agenda behind QE3.
“Dollar Index Headed for Rapid Collapse” Over Next 3 to 4 Weeks
By Mac Slavo
SHTFplan.com
If you think the Federal Reserve’s quantitative easing will only affect the US dollar, think again.
Now that the United States has officially begun it’s third round of money printing to the tune of at least $40 billion monthly, central banks around the world will also act to ‘defend’ their currencies in kind.
Moreover, because everyone is joining the fray, all of that extra money will make its way into key resource stocks and commodities, adding further upside price pressure to essential goods like food and fuel.
It’s a race to the bottom, and the losers are the 99.9% of us who aren’t being kept in the loop.
Quantitative easing is really another word for currency wars. A weak U.S. currency puts continued pressure on the Japanese Yen, the Chinese Yuan, the South Korean Won, the Australian dollar and other currencies.
Cheap money also fuels speculation and this money quickly drifts into commodity markets and the ETFs that help propel commodity market speculation. This is inflationary for food prices.
The lower the U.S. dollar the greater the intensity of currency wars. The break below the key uptrend line on the Dollar Index chart was an early warning of the third round of quantitative easing (QE3).
The most important question now is to use the chart to examine the potential downside limits of a QE3 weakened U.S. dollar.
…
The weekly close below this uptrend line was the first signal of a major change in the trend direction. It came before the announcement of QE3, last week.
…
The third significant feature is historical support near 74.5. This is the upper edge of a consolidation band between 73.5 and 74.5. This is the downside target for the Dollar Index following a fall below 79.
This target can be reached very rapidly over three to four weeks. A rapid collapse of the U.S. dollar puts immediate pressure on other dollar-linked currencies.
There is a very low probability the U.S. dollar will resume its uptrend. The move below the value of the uptrend line and a fall below 79 confirm that a new downtrend has developed.
The weakness in the U.S. Dollar will hurt export dependent economies and companies.
There are two ways this may end – neither of which is going to be good for the average Joe:
- The Fed et. al. continue to print, so much so that prices for food, gas, utilities and other key commodities that are linked to US dollar movements will rise exponentially. This rise in prices will accelerate the pressure on consumers as more jobs are lost in an ever progressing, self reinforcing economic death spiral. The pressure of rising prices, even though the Dow Jones may reach 20,000 or 50,000 points, will be so great that American consumers simply won’t be able to pay their bills or put food on the table.
- The Fed and their brethren around the world won’t be able to print fast enough to maintain stable financial markets, leading to stock market crashes in Europe, Japan, China and the United States, which then leads to a shift of capital to US Treasury bonds, ironically strengthening the dollar. A weak US economy that isn’t creating jobs and is adding tens of thousands of people to an already overburdened social safety net every week will eventually lead to confidence being lost in the US government’s ability to repay its debts. As we noted in 2012 Predictions of a Mad Tin Foilist, the end result will be a currency crisis, or de facto default by way of hyperinflating away our debt.
Both scenarios are virtually the same, as both will end with complete and utter destruction of Americans’ wealth.
Infinite quantitative easing (QE3) now initiated; the final chapter of America’s financial blowout has begun
by Mike Adams, the Health Ranger
(NaturalNews) This is it, folks: the final chapter of America’s great financial blowout has begun. The Federal Reserve’s decision to announce “infinite” quantitative easing has now put us all on the path of infinite money creation. With up to $85 billion in monthly money creation — including $40 billion a month in purchases of mortgage-backed securities — the Fed is now wholly committed to the creation of new fake money to cover old fake debts. Mathematically, this financial death spiral can only end in sheer catastrophe.
This massive money creation tactic is the Fed’s last-ditch plan to desperately try to save the economy. “I think the country should have panicked over what the Fed is saying that we have lost control,” said Ron Paul, “and the only thing we have left is massively creating new money out of thin air, which has not worked before, and is not going to work this time.”
Peter Schiff added, “This is a disastrous monetary policy; it’s kamikaze monetary policy.” (End Of the American Dream)
And he’s right. It’s suicide. It’s also highly offensive to anyone who can actually do math… which, sadly, isn’t that many people these days.
Steal from the poor to give to the rich
Quantitative easing, you see, is essentially the Federal Reserve creating money and then handing it to the richest banks. Meanwhile, all that new money floating around erodes the value of the dollars in the hands of the working taxpayers. So their grocery bills go up. Their fuel costs go up. Their daycare costs increase and their utility bills creep ever skyward.
But the rich banksters are simultaneously rolling in FREE Fed cash, and instead of actually lending this money out and doing something useful with it, they crank up their own executive bonuses to make sure they get paid while the rest of the economy crumbles. And why? It’s simple: Because people are crooks, and if they get handed $40 billion a month in free money, they’re just going to grin and say, “How can we get MORE?”
That’s the credo of the banks: MORE!
When you’re out of a job and looking for honest work just to put a roof over your head, the bank is repossessing your house and screaming “MORE!”
When you can’t make that car payment and you have to start riding the bus with the minimum wage masses, the banks scream “MORE!”
When you’re trying to put healthy food on the table for your own family, and you see food prices ratcheting higher and higher as the value of your hard-earned dollar erodes, the banks scream “MORE!”
This mantra is all they know. The top global banks do not operate on compassion, benefit to society, fairness or even anything resembling lawful activity. They simply hornswaggle their way into the receiving end of ALL the money: Mortgage money, bailout money, government money and of course Fed money. That’s the game, you see: Screw the whole world and everybody in it. There’s MORE to be had!
Fed pumping is essentially a Ponzi scheme
How long will this go on? Until the whole system suddenly collapses due to its own corruption and greed. All such systems eventually collapse, of course. The Federal Reserve is essentially pushing a global Ponzi scheme where new money is created in order to keep old money from being lost.
The problem with all Ponzi schemes is that their very survival depends on continually expanding the money base upon which they operate. And since mathematics tells us that no currency system can be expanded to infinity, every such Ponzi-like system must, by definition, come crashing down.
We’ve seen it time and time again, of course. Zimbabwe cranked its currency into hyperinflation and then collapsed. So did Argentina. Chile. Peru. Weimar Germany, too:
In 1922, the largest denomination of the Papiermark was 50,000. A year later it was 100 Trillion. This means that by December 1923, the exchange rate with the US Dollar was 4.2 Trillion to 1. It is estimated that by November 1923, the yearly inflation rate was considered 325,000,000%. (http://www.mint.com/blog/trends/hyperinflation-the-story-of-9-failed-…)
Yugoslavia: “…during the height of hyperinflation (December 1994), inflation was increasing by a rate of 100% per day.”
Peru: “Peruvian government decided again to replace the currency, this time with the Neuvo Sol, at a rate of 1,000,000,000 to 1.”
Zimbabwe: “In August 2008, the government removed ten zeros from the currency, and 10 Billion ZWD became equal to 1 New ZWD, with an estimated annual inflation rate of about 500 quintillion (18 zeros) percent, with a monthly rate of 13 billion percent.”
Hungary: “In 1944, the Hungarian Pengo’s highest denomination was the 1,000 note. A year later it was 10,000,000. And by mid-1946, it was 100,000,000,000,000,000,000.”
Can this happen to the U.S. dollar?
The good news is that the U.S. dollar has a large circulation base. The U.S. dollar M2 money supply is roughly $10 trillion.
That sounds really large until you consider the U.S. national debt is, all by itself, $16 trillion. (www.USdebtClock.org) In just four more years, by 2016, that debt will almost certainly reach $22 trillion. (http://www.usdebtclock.org/cbo-omb-gop-budget-estimates.html)
On top of all this, if the Fed is printing $85 billion a month, it adds another trillion dollars to the monetary base each year. Effectively, this means the Fed will be expanding the money supply by 10% annually, from day one. Except it doesn’t end there, of course. In just a few months, the $85 billion a month will need to be increased to $200 billion a month. Then $500 billion a month. And before you know it, the Fed is creating one trillion dollars a month in a grand, final blowout of the U.S. dollar.
QE3 becomes the “infinite bailout” strategy of the Fed. But there’s a problem in all this: Infinite money creation means infinite devaluation. As the money supply expands, the value of the dollars currently in circulation (physically or electronically) approaches ZERO. Such is the curse of mathematics and the laws of economics.
A global debt dump is inevitable
The final phase of all this will be radically accelerated, of course, by the dumping of U.S. government debt by other central banks in China, Japan and elsewhere. When they see the writing on the wall, they’ll stage a selloff. The selloff will send shockwaves throughout the financial sector, causing investors to flee the dollar and ultimately resulting in the Fed creating even more fiat currency to buy back U.S. debt in a last-ditch effort to prevent a national bankruptcy.
This is the point where you get into Zimbabwe territory… where the government is forced to issue “new dollars” with a trade-in value of 1,000,000 to 1, and where the Fed becomes the last buyer of U.S. debt because nobody else will touch it. This is a lot like getting a cash advance on your credit card in order to make your minimum monthly payment. The debt accumulates as crushing compound interest, and there is no escape from the inevitable default.
This day is coming for America and the U.S. dollar.
Timing? Still unknown
The timing on all this is, of course, an unknown. Some of the more outspoken critics of Fed financial policy believe we’re going to see a financial meltdown before the end of April 2013. Others think it may take several years longer. A few observers say we’ll be lucky to make it to Christmas.
Personally, I’m always amazed at how long corrupt institutions can prop up their monetary scams, so I tend to think a full-blown meltdown might require years to take place. But the banking debt crisis is likely to happen much sooner, potentially even this year (after the election). That’s not an official prediction, however; it’s just a cautious warning to be safe rather than sorry. Historically, my own predictions tend to be 1-3 years too early. I began warning about the dot-com bubble in 1998, for example, and it didn’t burst until 2001. I began warning about the housing bubble a year or two before it collapsed.
Either way, the U.S. dollar has become a game of musical chairs, and the loser is anyone holding dollars when the music stops. Don’t have all your eggs in the dollar basket when that day comes, okay? Diversify into storable food, gold, farm land… anything that holds value through a currency collapse.
Because remember, the value of the currency you hold can be stolen from you even if the physical paper money is not. This swindle has been repeated countless times throughout human history, always by corrupt central bankers and government conspirators. Time after time, the People get scammed, and time after time, most of them can’t even figure out who stole the money. That’s the evil genius of the entire plan: Currency creation is invisible theft. With every new dollar they create, they effectively steal one dollar’s worth of purchasing power from those who hold the currency.
In essence, then, the Federal Reserve has announce its plan to steal $85 billion a month from those who hold U.S. dollars… with no limit to the number of months this theft will continue.
We are staring into the eyes of the beast here, looking at the greatest financial swindle ever pulled off in the history of the world. This is the banker end game. When this chapter is complete, the people will be left with nothing while the banks own everything. It’s all about MORE! …remember?
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