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And my fear is that they will do exactly that. Which is of course a hyperinflationary scenario.
Another interesting take is how the currency was devalued against gold when they confiscated it in '33. I think the price was doubled afterwards, which was a defacto 50% devaluation of the dollar. Which is really tame when compared with the fractional potential of what can happen with QE if it ever gets loose from the banks.
Obama unveiled the first portion of a six-year federal infrastructure building program that would improve the nation’s roads, railways and runways. The first portion of the plan, according to the White House, would cost $50 billion. Under the plan, 150,000 miles of road, 40,000 miles or rail line and 150 miles of airport runways will be rebuilt or repaired.
www.washingtonpost.com... and here by Silent Thunder
a binder full of scary descriptions and warnings, offered with a perma-smile and singsong delivery: "Terrible recession. . . . Incredibly searing. . . . Dramatically below trend. . . . Suffering terribly. . . . Risk of making high unemployment permanent. . . . Economic nightmare."
Thanks to the well-timed purchase of the US arm of bankrupt Lehman Bros in the autumn of 2008 and years of recruitment and investment, Barclays now owns one of the world's biggest and most successful investment banks in the form of Barclays Capital.
What's more, Barclays weathered 2008's worst financial crisis in living memory
Quantitative Easing (QE I) spearheaded by the Chairman of Federal Reserve, Ben Bernanke delayed the inevitable demise of the fiat shadow money banking system slightly over 18 months.
Trade has jumped by 20% in the three years since the last survey was conducted by the Bank for International Settlements (BIS), which is sometimes called the "central bankers' bank".
But London outpaced the average, with turnover up by 25% over the period.
Some $4 trillion (£2.6tn) changes hands around the world every day.
The BBC's business editor, Robert Peston, points out that the sum is equivalent to the entire output of the global economy being traded around once a fortnight on currency markets.
the words of Bernanke “the recent pace of growth is less vigorous than we expected” has all but vindicated my analysis. He warned that the outlook is uncertain and the economy “remains vulnerable to unexpected developments”.
Obviously, Bernanke’s words do not reveal the full extent of the fear that has gripped central bankers and the financial elites that assembled at the annual gathering at Jackson Hole, Wyoming. But, you can take it from me that they are very afraid.
....The “unexpected developments” Bernanke referred to is the collapse of the global banks. This is FED speak and to those in the loop, this is the dire warning.
So what we have is a merry-go-round of monies moving from the right pocket to the left pocket at the click of the computer mouse. The FED creates money, uses it to buy toxic assets, and the same money is then returned to the FED by the global banks to earn interest. By this fiction of QE, banks are flushed with cash which enable them to earn interest. Is it any wonder that these banks have declared record profits?
12) The global banks get rid of some of their toxic wastes at full value and at no costs, and get paid for unloading the toxic wastes via interest payments. Additionally, some of the “monies” are used by these banks to purchase US Treasuries (which also pay interests) which in turn allows the US Treasury to continue its deficit spending. THIS IS THE BAILOUT RIP OFF of the century.
Now that you fully understand this SCAM, it is left to be seen how the FED will get away with the next round of quantitative easing – QE II.
Obviously, the FED and the other central banks are hoping that in time, asset prices will recover and resume their previous values before the crisis. This is a fantasy. QE II will fail just as QE I failed to save the banks
Originally posted by burntheships
reply to post by unityemissions
And...speaking of Confiscation of Private Retirement Accounts, I found the news release.
Treasury And U.S. Dept Of Labor Schedules Hearing On Confiscation Of Private Retirement Funds
I knew this was coming, but I am still jaw dropped, as the announcment is on the U.S. Department Of Labor's own website. Show that to anyone who thinks their nest egg is secure. It might wake them up!
As that effort (saving the banking system) moves forward the Fed is just
short of two years of zero interest rates, a policy that they cannot easily change.
If they raise rates at this juncture or stop increasing money and credit the
bottom will fall out of the economy.
These are the only methods they have of keeping the system alive....
According to the BLS, 331,000 Americans were forced to downgrade
their employment status to part-time or some chunk of them would have
lost their jobs.
Unemployment still is going nowhere although recent numbers on the face
were not all that had. Of the 67,000 in job growth 10,000 was the result
of the end of a construction strike. A figure government loves to hide is
those forced into part-time employment by an additional 331,000,
which certainly keeps the figure close to 10 million. In case you didn’t notice
all the gains were part-timers – hours worked were flat. Manufacturing lost
27,000 jobs. In April the diffusion index was 68 and in August it was 53.
Probably the most important figure of all U6 rose in August to 16.7%
from 16.5% in July, as real unemployment after taking out the birth/death
ratio rose again to 21-3/8%.
Bailing out the financial system hasn’t worked. The loans and special deals
have only covered up the crimes these corporations were involved in and
allowed them to escape bankruptcy, which they so richly deserve.
There is no other way to describe what has transpired in the financial community
than welfare for the mega rich. What is worse is that they go right on looting
the public as if nothing has happened....
... The only way the system can be saved before it crashes is for the
system to be purged. The financial sector and others have to be allowed
to go into bankruptcy and if they are not eventually chaos and revolution
will ensue. Yes, we know that financial sector controls the government,
so won’t voluntarily allow that to happen.
With physical gold and silver you are protected from inflation and deflation. Don't buy paper. With the current deflation trend the govt is forced to QE. Unless you are one of the govt cronies you will lose out. If the govt goes too far it will lead to hyperinflation which is loss of faith in paper.
Second: A crash isn't coming. Way, way, way too much inflationary pressure and currency debasement forces upward pressure on prices of everything. Including real estate. RE needs to let off some steam, so a flattening or 15% drop is likely. But those wishing for a 30% to 50% drop are going to be sorely disappointed.
The United States is suffering from two kinds of deficits: a jobs deficit and a budget deficit. The jobs deficit is affecting millions. The underemployment rate among all Americans persists at 16.5 percent, but for minorities it’s even worse; the recession has resulted in underemployment for 23.4 percent of Hispanic and African Americans. For those with only high school diplomas, underemployment rests at 21.2 percent. Those without a diploma are worse off than anyone; 30.7 percent in this demographic are underemployed. Among those who have a college education or more, 8.1 percent are underemployed, 22.6 percentage points lower than their less educated peers.
At a time when our economy is peering into the precipice, our representatives do not even have a budget for the fast approaching fiscal year.
In actuality, Congress is delaying a finalization of the budget because of the impending election not in spite of it. It won't be the first time. Delayed federal budgets do not necessarily go against the grain. For the past 35 years Congress has regularly failed to finalize a budget before the beginning of the fiscal year.
The CBO estimates that the 2011 budget will total $3.7 trillion based on policies that were in place this summer. More than two-thirds of the budget will be allocated to entitlement programs and the national debt.
Originally posted by SunnyDee
Does this chart mean anything to you all? SOmeone sent it to me today, and said it was very telling.