and well known Keynesian economist Paul Krugman makes the case for monetary easing and Fed intervention
by claiming that the rising cost of food and gas has nothing to do with the Federal Reserve or the free money they’ve
dished out to banks, both foreign and domestic, to the tunes of not billions, but tens of trillions of dollars.
latest economic theory from the Nobel Prize winning economist suggests that the Fed and government
intervention couldn’t possibly
have anything to do with
US dollar depreciation – not for the last hundred years, and certainly not today:
and gas is not something that’s being driven by Fed policy. Sorry, but Ben Bernanke doesn’t have that much power. That’s being driven by events in China. That’s being driven by events in a large
dollar hasn’t gone down. That’s
the amazing thing. If you actually look at the Dollar vs. the Euro, the Dollar vs. the Yen, it has not. In terms of the world’s other major currencies we have not had a big depreciation
of the dollar.
History says that a regime of moderate inflation is better for workers than we’ve got now.
Video via The Info Warriors
we weren’t so opinionated, we’d be speechless.
exhibit no. 1 as the only
evidence necessary to prove exactly the opposite of
Mr. Krugman’s claims:
fact of the matter is that since
its very inception the Federal Reserve
has played the key role
in the destruction of our currency
with a dollar today being worth just
5% of what it was in 1913.
notably (and we expect to receive our Nobel Prize for Economics nomination in the mail shortly
after publishing this groundbreaking work) the US dollars has depreciated
against every single physical commodity on the planet for nearly a hundred years. This can only be
possible through one economic
policy – currency
very notion that the US
dollar is not depreciating
against other currencies, and that this is indicative of a successful monetary policy, is patently
ridiculous. The EU, taking
the lead from their colleagues in the United States, is
printing trillions of Euros to keep the system afloat by slamming it with liquidity.
So, in simplistic terms,
if we print $10 trillion
dollars and the Europeans print
the equivalent amount of
Euros, we have absolutely
no change in our exchange rates, because they both retain the same value against each other as they had before
Where the value of this
central bank toilet paper becomes apparent is not in the exchange markets cited by Mr. Krugman as an indicator of a healthy currency, but rather, in the amount of physical goods that government
backed currency can buy.
Easy money (and the fraud that came with it) is
to blame for the doubling
(and subsequent halving)
of home prices from 2001 through today. So, too, can we
blame the Federal Reserve
for the rising prices of our food, gas
Does Mr. Krugman
actually believe that when you
give investment banks around the world tens of trillions of free dollars to invest
risk-free into whatever assets they deem appropriate,
that they won’t force the prices of
these assets through the roof? This is exactly what happened leading up to the 2008
crash, and this is what is happening today. Granted, we have a rise in demand as billions of people in China an India come online in the new global economy,
but the majority of the price
rises over the last few years
have originated from the essentially free money the Fed has given
to those specific entitites that actually do have the power to make
markets move. By this logic, Mr. Bernanke undeniably has the power to control these
prices, as he controls the money supply and
the pipelines through which
it is distributed.
When you consider that Mr. Krugman is a highly respected and influential economist whose ideas have been accepted and implemented by monetary and government officials without contemplation
or discussion, then it becomes apparent how serious of
a problem we are facing.
What’s scary is that we
don’t think Mr. Krugman is lying
to us when he speaks of these ludicrous theories. He , and those who implement these policies, actually believe them as Gospel, and that is much more dangerous.
that you follow the one investment strategy you need to know to protect yourself against the coming inflation monster
and start acquiring physical commodities right now, because these people – these
best-and-brightest of our
financial and economic
world – will not stop until
the US dollar, our purchasing
power, our retirement savings
and our entire way of life are completely wiped out.