This is the plan to devalue the US dollar by 40%, as stated by Ben Bernanke to the National Economists Club on 11-21-02. He says it in bankers speak,
very dry speech but is very important to get this to everyone and explain what is about to happen, he lists the steps he would take as Fed chief
(which he is now) to combat deflation and inflation in a slow or stagnent economy. I am aware that most everyone heard about this speech on the Alex
Jones program from Pastor lindsey Williams, this is the mentioned speech, from the Fed site itself. Please read this speech people 40% is a lot to
loose, buy gold buy silver today keep your value in something tangable.
here is the speech it is a must read-www.federalreserve.gov...
edit on 1-1-2012 by 1947flxible
because: spelling correction, eigth of a million more to come
Relivent Quote from speach-
The Fed can inject money into the economy in still other ways. For example, the Fed has the authority to buy foreign government debt, as well as
domestic government debt. Potentially, this class of assets offers huge scope for Fed operations, as the quantity of foreign assets eligible for
purchase by the Fed is several times the stock of U.S. government debt.16
I need to tread carefully here. Because the economy is a complex and interconnected system, Fed purchases of the liabilities of foreign governments
have the potential to affect a number of financial markets, including the market for foreign exchange. In the United States, the Department of the
Treasury, not the Federal Reserve, is the lead agency for making international economic policy, including policy toward the dollar; and the Secretary
of the Treasury has expressed the view that the determination of the value of the U.S. dollar should be left to free market forces. Moreover, since
the United States is a large, relatively closed economy, manipulating the exchange value of the dollar would not be a particularly desirable way to
fight domestic deflation, particularly given the range of other options available. Thus, I want to be absolutely clear that I am today neither
forecasting nor recommending any attempt by U.S. policymakers to target the international value of the dollar.
Although a policy of intervening to affect the exchange value of the dollar is nowhere on the horizon today, it's worth noting that there have been
times when exchange rate policy has been an effective weapon against deflation. A striking example from U.S. history is Franklin Roosevelt's 40
percent devaluation of the dollar against gold in 1933-34, enforced by a program of gold purchases and domestic money creation. The devaluation and
the rapid increase in money supply it permitted ended the U.S. deflation remarkably quickly. Indeed, consumer price inflation in the United States,
year on year, went from -10.3 percent in 1932 to -5.1 percent in 1933 to 3.4 percent in 1934.17 The economy grew strongly, and by the way, 1934 was
one of the best years of the century for the stock market. If nothing else, the episode illustrates that monetary actions can have powerful effects on
the economy, even when the nominal interest rate is at or near zero, as was the case at the time of Roosevelt's devaluation.
edit on 1-1-2012 by 1947flxible because: added quote from speach