Quantitative easing

Monetary Heroin Will Crash the Dollar [Video]

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economyGreg Hunter – Money manager Peter Schiff, who wrote a book three years ago called “The Real Crash,” thinks the next calamity is well on its way.  Schiff says, “I think the next crash is going to be a dollar crash rather than a stock market crash.  Certainly it is going to be an economic crash for the average American, and their cost of living goes skyrocketing.”

So, is the next crash going to be worse than the last meltdown?  Schiff says, “It’s going to be much, much worse.  If you understand what caused the 2008 financial crisis, it was the easy monetary policies of Alan Greenspan. . . . The monetary policies of Bernanke and Yellen dwarf what Alan Greenspan did.  That was child’s play compared to what these guys have done.  We have had zero percent interest rates for six years.  We have had three rounds of quantitative easing (QE or money printing) and “Operation Twist.”

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An Insane Financial World

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banksGary Christenson – We know that most western governments are deficit spending, borrowing heavily, in debt beyond the point of no return and must increase taxes and appropriations from their citizens.

We know that politicians will take the politically expedient path instead of addressing financial problems.  We know they will “extend and pretend,” delay, and distract the populace.

We know that war has been a nearly constant distraction since 9-11 and that a crisis is often used as a justification for economic insanity, such as borrowing more to address an excessive debt problem.  It seems likely that weakening economies, deflationary forces, excessive debt, massive unemployment, riots, economic anxiety, consumer price inflation, and so much more, will require more distractions.  We should “rig for stormy weather” and expect another crisis and more wars.

Bankers, politicians and military contractors will benefit.  IN OUR INSANE WORLD WE MIGHT ASK:

  • What happens to our financial system and the price of gold when western central banks are no longer willing or able to ship gold to Asia in exchange for fiat currencies held by Russia and China?
  • What would happen if the Chinese government announced that it will buy gold at $2,000 per ounce to boost their stockpile? When gold is no longer available at $2,000 per ounce, might they offer $4,000 or $6,000?

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The Purchase Of Our Republic

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“This massive consolidation of wealth, combined with the removal of any limits on money in campaigns, has allowed for the purchase of our government, or as Dick Durban once stated, “frankly they [the banks in this case] own the place”. If money = free speech, then those with all the money, have all the free speech.”

Americans know that something is wrong, deeply wrong. They see signs of the problem everywhere: income inequality, growing concentration and power of mega corporations, political donations/corruption, the absence of jobs with decent salaries, the explosion of the US prison population, healthcare costs, student loan debt, homelessness, etc. etc.

However, the true causes and benefactors behind these problems are purposely hidden from view. What Americans see is Kabuki Theater of a functioning form of capitalism and democracy, but beyond this veneer our country has devolved into the exact opposite.

Those who benefit from this crony capitalist state go to extreme lengths to paper over the reality and convince Americans that the system works, the American Dream is still a reality and that American democracy is in fact democratic.

Below I hope to begin to outline some of the underlying dynamics and trends that have evolved in recent decades and led us so far from what we once were. As fun as it would be, the answer is not some evil conspiracy by the Illuminati, but rather the unfortunate result of three long term and mutually reinforcing components that have been attacking the fundamental roots of the structure of our Republic.

The first is the increased concentration of corporate and private wealth. Both of which are quickly yelled down in the media as anti-free market and class war hysteria.

WealthInequalityInAmerica1The second is the use of this wealth to capture all three branches of government in order to ensure the continued extraction of capital from the many and to the few.The rich might have climbed the ladder because they earned it, but they have then purchased government to pull up the ladder behind them.

The consequence of the first two components is a democracy in name only that represents the very few.
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The Fed Is The Great Deceiver

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PaulCraigRoberts  May 12 2014

cartoon_fedresIs the Fed “tapering”? Did the Fed really cut its bond purchases during the three month period November 2013 through January 2014? Apparently not if foreign holders of Treasuries are unloading them.

From November 2013 through January 2014 Belgium with a GDP of $480 billion purchased $141.2 billion of US Treasury bonds. Somehow Belgium came up with enough money to allocate during a 3-month period 29 percent of its annual GDP to the purchase of US Treasury bonds.

Certainly Belgium did not have a budget surplus of $141.2 billion. Was Belgium running a trade surplus during a 3-month period equal to 29 percent of Belgium GDP?

No, Belgium’s trade and current accounts are in deficit.

Did Belgium’s central bank print $141.2 billion worth of euros in order to make the purchase?

No, Belgium is a member of the euro system, and its central bank cannot increase the money supply.

So where did the $141.2 billion come from?

There is only one source. The money came from the US Federal Reserve, and the purchase was laundered through Belgium in order to hide the fact that actual Federal Reserve bond purchases during November 2013 through January 2014 were $112 billion per month.

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