Author Topic: Infinite quantitative easing (QE3) now intitiated; the final chapter of America's financial blowout has begun  (Read 1705 times)

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Offline rangerrebew

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Infinite quantitative easing (QE3) now initiated; the final chapter of America's financial blowout has begun



Sunday, September 16, 2012
by Mike Adams, the Health Ranger
Editor of NaturalNews.com (See all articles...)
 
   
 (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/hyperinflati...)

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-budge...)

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?


Learn more: http://www.naturalnews.com/037223_quantitative_easing_Federal_Reserve_money_creation.html##ixzz2ifwSwTNr
"Of all the dispositions and habits which lead to political prosperity, religion and morality are indispensable supports. In vain would that man claim tribute to patriotism who should labor to subvert these great pillars of human happiness -- these firmest props of the duties of men and citizens. . . . reason and experience both forbid us to expect that national morality can prevail in exclusion of religious principles."
George Washington

"Only a virtuous people are capable of freedom. As nations become more corrupt and vicious, they have more need of masters."
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Offline GourmetDan

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While this is a year old, I am reminded of the old Doritos commercial.

"Take all you want, we'll make more..."

Or rather the Federal Reserve will and will 'buy' things with 'dollars' created with an accounting entry...


« Last Edit: October 24, 2013, 05:07:13 PM by GourmetDan »
"The heart of the wise inclines to the right, but the heart of the fool to the left." - Ecclesiastes 10:2

"The sole purpose of the Republican Party is to serve as an ineffective alternative to the Democrat Party." - GourmetDan

Offline rangerrebew

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I really posted it so people could understand "quantitative easing", another political mumbo jumbo term.  Its one of those terms we frequently hear but aren't sure what it is or how it affects us.  As can be seen from this post, those who have used it in the past have come out on the losing end. :doa:
« Last Edit: October 24, 2013, 05:11:19 PM by rangerrebew »
"Of all the dispositions and habits which lead to political prosperity, religion and morality are indispensable supports. In vain would that man claim tribute to patriotism who should labor to subvert these great pillars of human happiness -- these firmest props of the duties of men and citizens. . . . reason and experience both forbid us to expect that national morality can prevail in exclusion of religious principles."
George Washington

"Only a virtuous people are capable of freedom. As nations become more corrupt and vicious, they have more need of masters."
Benjamin Franklin

Offline truth_seeker

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Inflation benefits entities/people that owe money. The debts are repaid by ever-cheaper dollars.

Usually the "price" of assets increases, to adjust for inflation, eg. real estate, stocks.

Those harmed by inflation are those with no assets, no inflation-adjustment for their wages and salaries.

Facts I calculate:

--the DJIA price is 15 times what it was for the 1987 "Black Monday" adjustment

--home prices in the Lost Angeles metro area are 30 to 40 times the level, of 40 years ago

"God must love the common man, he made so many of them.”

Abe Lincoln

Offline GourmetDan

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I really posted it so people could understand "quantitative easing", another political mumbo jumbo term.  Its one of those terms we frequently hear but aren't sure what it is or how it affects us.  As can be seen from this post, those who have used it in the past have come out on the losing end.

Yes, it is reducing this bond-buying (the 'taper') that they talk about from time to time that knocks the Stock Market down and they follow through with a smash to the price of gold to make the dollar look 'stronger'.

Like the article says, odds are they won't 'taper' but rather will increase the buying to prop up the economy till inflation becomes a problem.  Who knows what they will do then.  A 'peso-style' reval where they knock off a few zeros maybe?

Till now the world has not experienced a hyper-inflation in a reserve currency (which the dollar is).  It could get very ugly.

"The heart of the wise inclines to the right, but the heart of the fool to the left." - Ecclesiastes 10:2

"The sole purpose of the Republican Party is to serve as an ineffective alternative to the Democrat Party." - GourmetDan

Offline Scottftlc

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The Faustian Bargain was made a few years ago with advent of QE to deal with the most damaging impacts of the Great Recession (the effect on the equity and bond markets from the "contagion") and also worst excesses of our modern crony/fascist economics, the economics that have been established primarily to make our political elite wildly wealthy.

The bargain once struck cannot be undone, it can only snowball at an ever increasing speed and magnitude until all becomes untenable.  If QE were curtailed the bond and equity markets would collapse into rubble...and take with them, among many other things, every public and private pension in the U.S.  Grandma and grandpa would indeed be eating dog food...if they could afford even that.

QE will...no must...continue at an ever increasing pace....the entire economic house of cards now rests upon it.  It cannot be curtailed without complete societal collapse.
Well, George Lewis told the Englishman, the Italian and the Jew
You can't open your mind, boys, to every conceivable point of view

...Bob Dylan

Offline GourmetDan

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QE will...no must...continue at an ever increasing pace....the entire economic house of cards now rests upon it.  It cannot be curtailed without complete societal collapse.

Yeah, but the thing is that this has not been done to a reserve currency before.  Unless you go back to the Greek and Roman times.

Maybe all the gold the Chinese have been buying will get re-valued and the remnibi will become the world's reserve currency?  Or a basket of currencies based on the relative size of gold-holdings?

I hope Ft Knox isn't empty...



« Last Edit: October 24, 2013, 05:59:52 PM by GourmetDan »
"The heart of the wise inclines to the right, but the heart of the fool to the left." - Ecclesiastes 10:2

"The sole purpose of the Republican Party is to serve as an ineffective alternative to the Democrat Party." - GourmetDan

Offline Scottftlc

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With appropriate apologies to Ian Anderson:

In the shuffling madness
Of the locomotive breath,
Runs the all-time loser,
Headlong to his death.
He feels the piston scraping --
Steam breaking on his brow --
Old Charlie stole the handle and
The train won't stop going --
No way to slow down.

He sees his children jumping off
At the stations -- one by one.
His woman and his best friend --
In bed and having fun.
He's crawling down the corridor
On his hands and knees --
Old Charlie stole the handle and
The train won't stop going --
No way to slow down.

He hears the silence howling --
Catches angels as they fall.
And the all-time winner
Has got him by the balls.
He picks up Gideon's Bible --
Open at page one --
And says: "God, he stole the handle"
And the train won't stop going --
No way to slow down.
Well, George Lewis told the Englishman, the Italian and the Jew
You can't open your mind, boys, to every conceivable point of view

...Bob Dylan

Offline truth_seeker

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In the words of George Harrison

TAXMAN

"Let me tell you how it will be
 There's one for you, nineteen for me
 'Cause I'm the taxman, yeah, I'm the taxman

 Should five per cent appear too small
 Be thankful I don't take it all
 'Cause I'm the taxman, yeah I'm the taxman

 If you drive a car, I'll tax the street,
 If you try to sit, I'll tax your seat.
 If you get too cold I'll tax the heat,
 If you take a walk, I'll tax your feet.

 Don't ask me what I want it for
 If you don't want to pay some more
 'Cause I'm the taxman, yeah, I'm the taxman

 Now my advice for those who die
 Declare the pennies on your eyes
 'Cause I'm the taxman, yeah, I'm the taxman
 And you're working for no one but me."

SUE ME, SUE YOU blues

"And you serve me and I'll serve you
 Swing your partners, all get screwed
 Bring your lawyer and I'll bring mine
 Get together and we could have a bad time

It's affidavit swearing time
 Sign it on the dotted line
 Hold your bible in your hand
 Now all that's left is to find yourself a new band

We're gonna play the sue me, sue you blues
 We're gonna play the sue me, sue you blues

We're gonna play the sue me, sue you blues
 Sue me, sue you blues

Hold the block on money flow
 I move it into joint escrow
 Court receiver, laughs and thrills
 But in the end we just pay those lawyers their bills

When you serve me and I'll serve you
 Swing your partners, all get screwed
 Bring your lawyer and I'll bring mine
 Get together and we could have a bad time

We're gonna play the sue me, sue you blues
 Sue me, sue you blues
 I'm tired of playing the sue me, sue you blues"

Disclaimer: Many artists get really pissed off at the business side of being a music artist. I don't think it particularly reflects them as either liberal or conservative.

Some have literally been cheated of millions in their early years, before they learned how to protect themselves properly.
"God must love the common man, he made so many of them.”

Abe Lincoln

Offline GourmetDan

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Central Banks Drop Tightening Talk as Easy Money Goes On

"The Bank of Canada’s dropping of language about the need for future interest-rate increases and today’s decisions by central banks in Norway, Sweden and the Philippines to leave their rates on hold unite them with counterparts in reinforcing rather than retracting loose monetary policy. "


"The heart of the wise inclines to the right, but the heart of the fool to the left." - Ecclesiastes 10:2

"The sole purpose of the Republican Party is to serve as an ineffective alternative to the Democrat Party." - GourmetDan

Offline Oceander

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Banks aren't the only ones who play by the mantra "MORE" - every rational economic actor operates on that same basis.


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