an article here (link ) of "propaganda front" in an article by bob chapman ( link ) is translated.
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The world financial system depends on the ropes. Any future currency will have to have some sort of gold or silver cover to endure and accept multilaterally to be
The Federal Reserve says we need inflation to deal with the debt overhang. Inflation creates no jobs, but only the distorted prices. The head of the Federal Reserve, Ben Bernanke, said that he could quit at any time with inflation, if it deems it necessary. This is not true because inflation should be exposed to take over the command and deflation, the economy would collapse.
There is no fine-tuning the instrument by which these two opposing effects on could be turned off and. The inflationary measures were blatantly and have been used in far too strong extent. This is the exact opposite of that with which the U.S. central bank was actually charged. Your task is to promote price stability and full employment, so in reality is still to the rescue of the banking system.
Within the past 3 years trying to FED, the banks will be to assist the process of getting rid of their toxic assets. These efforts could continue for another 5 years. The banks currently hold more toxic assets than ever before.
These problematic plants are the result of excessive lending and excessive speculation in the years 2003 and 2008 and a low interest rates that has lasted much too long.
In 2007 we became aware of these toxic assets for the first time in perceived quality and scope. Most of these bad assets from banks are still in the books - but the Bank for International Settlements, the FASB accounting body, the tax authorities and the government did not interfere because here is a double-entry accounting is practiced. If you wish to work in your company with such methods would Them to prison, the financial sector and transnational banks but this is perfectly fine.
That was the only reason why durgeführt was the first round of quantitative easing (QE1). QE1 was exclusively for the rescue of the financial industry and other elitist groups. The toxic assets that have not yet been sold to the U.S. central bank slumber, still in the bank balance sheets - perhaps forever.
The Federal Reserve created by the inflation of assets to be raised artificially, it seems that the bad assets to rise in price, although in reality not the case. By banks, trading houses and other toxic assets held, once only 30% of their nominal value, were worth, are now worth even less.
The whole global inflation may change the value of these assets nothing. Certainly, inflation may help in the meantime to provide for revenue, it will eventually benefit nothing. Long term, these strategies do not work. The current and future interest payments on the debt will be larger than the generated revenue.
The QE2 number in the amount of USD 900 billion is nonsense. When QE2 is over, the measures will amount to $ 1.7 trillion, so its almost twice as high.
QE1 will ensure that there will be in the U.S. by the end of this year a real inflation rate of 14%. QE2 will make in 2012 for 25% to 30% inflation. QE3 will take us to the hyperinflation. Monetization will have the say.
The die is cast, and it is unfortunate to see disturbing, as Mr Bernanke is lying to the U.S. Congress. What will he tell them if he has to concede that he had printed $ 1.7 trillion, we monetised the funds and turned in inflation, while the official interest rate was kept just above zero and the real interest rate for the 10-year U.S. government bond increased to 4.25% and 5.25% is? The American public will take your breath away.
Once again: The Federal Reserve and the U.S. banking system stuck in a trap from which there is no escape. If they raise the key rate, this leads to financial collapse. If they hold the key rate further down, so they could still go back QE2, which would also lead to a collapse of the economy, just as in 1992 in Japan, where the depression is still continuing. Both decisions would catapult the U6 unemployment in the United States to over 37% to the level of 1933.
Even worse: if the Fed located in the balance of assets would be valued at market prices, the U.S. central bank would be bankrupt - a situation that already for some time now has its validity.
It is not surprising that the Federal Reserve and the bankers who own the Federal Reserve does not want the FED will be subject to review and thoroughly investigated. Any bond sales by the Fed would lead to a further fall in prices and rise in yields on the bonds, which would mean an additional burden on the economy.
The majority of the stocks held by the Fed, are mortgage-backed securities (MBS) and collateralized debt obligations, which date from QE1 than is the lender, selected transnational corporations and the insurance companies saved.
Would you rate the stocks of the FED at market prices, the U.S. central bank would officially broke, what it is already reality. To show you how precarious the situation is to be noted here that the capital of the U.S. central bank amounted to USD 60 billion while the balance of approximately $ 3 trillion has been inflated.
Now you know why the real interest rate was kept so low. The stock and bond markets must be kept artificially above, so that the balance sheet of the FED does not collapse. What many do not realize is that virtually everything is in the balance sheet of the Fed, created out of nothing and was monetizes.
A Part of this flight capital and loan made sure that the deflationary undercurrents were offset, and another part was exported to foreign budgets and percolates the rest of inflation now in the economy.
We are now in the early days is a runaway inflation and the Fed is well aware. You will make yourself honestly, whether or not worried that people will under which lose their life savings. They make only worried about the financial sector, so the owners of the FED, the Government and the international corporations.
Inflation will not revive the economy, but rather additional obstacle. It does not create jobs, which is now already completely obvious. These are all lies - smoke grenades and psychological warfare. By QE1 and QE2
U.S. inflation was exported to all parts of the world. This inflation will continue to grow daily and record the entire financial world. Food prices have shot through the roof, and in countries where food costs consume 75% of income, these price increases have led to the overthrow of governments. Even the prices for clothes triple.
The cause of these problems are the central banks in the U.S. and Europe, and their controlling banks. There is nothing more than a gigantic fraud, just like the "too big to fail" paradigm. It will happen no economic recovery. The only thing that will happen is that efforts be continued to maintain this criminal enterprise continues.
rises as inflation will also increase unemployment. Salaries are stagnant, so that the chosen elitists are able to accumulate more wealth. The beneficiaries will be as always with the elitists affiliated companies - all the criminals are not going to jail.
The profits of small and medium-sized enterprises are already soon fall further, as they are forced to absorb the price inflation to some extent and can not fully pass on these. Of course, these companies will then also make any adjustments.
observe the moment, the people around the world, the dilemma in the U.S., UK and Europe. This dilemma is one reason why it comes to the upheavals that have taken in North Africa and the Middle East began.
Not only does the U.S., UK and Europe have taken part in the uprising - they were also the accelerant available. Thus, the dislocations are consistent with the higher food prices in context.
The world public is tired of the tyrants and governments that refuse to place the people accountable to. The changes are partly due to the fact that people have now realized that these dictators disappear and those who control the governments need.
One could say that it should fall, Saudi Arabia, this is also for the entire Middle East and North Africa is. If the so-called monarchy in Saudi Arabia fall, then the whole region is for sale. That would mean the end of the petro-dollars, which would in turn usher in the fall of the dollar. This is something you to be aware and think about what you should.
As you know, there were always times in history, with the dollar in the course of events, such as those taking place currently in North Africa and the Middle East, a strong rally laid. This time, however, this is not the case. The U.S. dollar is now, not only compared with 6 other major currencies, but also against gold and silver.
soon could the U.S. Dollar Index, the most fundamental support level of 71.18. The U.S. imports more expensive and makes exports cheaper, which could lead to an improvement in trade balance. The pressure on the dollar should continue to continue, because the U.S. government carries on with their annual budget deficits of $ 1.6 trillion.
We believe that Ben Bernanke and Alan Greenspan be represented in the historical review to be totally incompetent. We currently have a terrible price and monetary inflation. In the end, after the hyperinflation has taken hold, we will experience something that we predicted for years - the deflationary depression.
After three attempts to lift the U.S. dollar index is above 82 points, has failed and the current attempt. The U.S. dollar index fell to 76.48. At 76 there is a technical support level, more fundamental support levels lie at 74 and 71.18. The current dollar weakness is systemic, but this is reinforced by QE2 and the second stimulus package.
At the end the players will understand that the real inflation is over 7% and still opens this year because of QE1 and the first stimulus package in the direction of 14%. Next year is going to boost QE2 and the second stimulus package, inflation even more. At the same time frame, the U.S. wages and incomes under enormous pressure, particularly in large corporations.
Next year we will see inflation above 20%. In 2012 and 2013 inflation by QE3 and the third economic stimulus package will be fueled. The expected inflation then catapulted to more than 30%, while we are in the range of hyperinflation.
What should we expect otherwise from these quantitative easing measures and economic stimulus measures worth $ 2.5 trillion per year? You will notice that the U.S. government, the U.S. central bank, Mr. Bernanke and Wall Street were all wrong with. This also means that it could come as early as August of this year to a decline in the creditworthiness of the United States. This should lead to the U.S. dollar provide further downward pressure on interest rate increases.
These events will ensure that a major summit of the countries - similar to Smith's Soni Meeting at the beginning of the 70s, the Plaza Accord of 1985 and the Louvre Accord of 1987 - is an increasing need to ensure that the currency may be revalued and devalued against one another and a regulation concerning the multilateral insolvency is made.
It will then probably come to a restructuring of the U.S. dollar, which should eventually receive a 25% gold backing. Maybe there will be a combination of currencies, which is a - also covered gold - currency index. That will come, although it is questionable whether this will happen already in 2011.
During the next phase is stagnant, unemployment and the U.S. will begin to understand what it means to be a poor third world countries. If there were in the United States no food stamps, no extended unemployment benefits and other forms of government aid would see in America today like in the 30s.
indicate the same time the oil price of $ 100 per barrel and food price inflation down to a loss of purchasing power of U.S. consumers of $ 200 billion. If the rise in oil prices to $ 120 per barrel, this means purchasing power losses of more than USD 400 billion. This would mean that the gross domestic product falling by 0.5% to 1.5%.
The above issues mean that any future currency by gold or silver or both precious metals must be met - whether the elites like it or not.
The multilateral recognition of currency is of paramount importance, and such a fiat money and discipline are the only components that are related to the financial system can be saved. The elitists know that on the other hand, would such a fiat money ensure that their system of wealth accumulation, the pursuit of power and dreams in terms of a world government Rigel is advanced. The euro had
may work, it had been built properly. Special Drawing Rights the International Monetary Fund are a hopeless case. The yuan is simply not yet mature enough, and China is facing a number of personal problems that are rarely discussed.
remain therefore only left a restructured dollar with gold backing or a gold-covered currency index or silver backed currencies. Everything else will not work, let alone be accepted. The world is once again on their own bodies that do not work, devoid of fiat currencies and the Fascist corporatist economic policies.
This leads only to subdue the people and destroyed the lives of all people - except the quality of life of the wealthy, those with good connections and the elitists who are doing well, while the rest of the world lives in poverty.
The current measures to establish a world government will not be successful. Humanity is once again in the economic and financial ruin and even creep perhaps even from the war rubble of World War II. Desperate people do desperate things - so be not surprised if a new war is being deliberately left by the curb, just as there is already many times in history have been the case.
Solid Money is the only answer, and the only alternative consists in a restructuring of the U.S. dollar, which then receives a 25% gold cover, with the gold price should be in this case is much higher than today. An index of 4 or 6 regional currencies should not also work very well.
A gold standard provides stability and ensures that the law is respected. In addition, it limits the current quite freely held excesses of Wall Street and the banking system. We need to see the Glass-Steagall Act and the criminals that control Wall Street and the banking system must also serve out their sentences behind bars and.
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avarchillion
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