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The global economy is falling apart all around us. We can expect a
continued rise in the price of gold and silver as it is becoming increasingly
apparent that the Federal Reserve, the U.S. government and even Alan
Greenspan are doing everything they can to destroy the value of the U.S.
Dollar. In fact, the policies currently being implemented by the
establishment is criminal because by devaluing the U.S. Dollar they are
indirectly robbing from the American middle class by destroying the
purchasing power of everyone�s
bank accounts that are denominated in U.S. Dollars. At this point it is
becoming increasingly clear that the establishment wants a weaker U.S. Dollar
considering some of the insane policies they are implementing and insane
things that they are saying.
What makes this rise in precious metals particularly interesting is the
fact that the IMF has been dumping gold on to the market and gold continues
to move up in value. The manipulation of the gold market is starting to fail
as is the policy of managing a slow decline of the U.S. Dollar without a
parabolic rise in precious metals. The rise in silver has been particularly
spectacular rising around $1 in price yesterday and it shows no signs of
slowing down. At this point we could easily see gold at $1,000 an ounce and
silver at $20 an ounce within the next month or two. So why is all of this
happening? Let�s take
a look at some of the news that has come out in the past few days.
First,
Alan Greenspan actually told Arab nations in the Gulf to drop their peg to
the U.S. Dollar. He actually said that the reason why they have so much
inflation in their economies is because they are pegged to the U.S. Dollar.
Greenspan is essentially admitting that there is inflation built into the
U.S. Dollar and that�s
why they are having problems with inflation. His statements also serve to
undermine confidence in the value of the U.S. Dollar since many people pay
close attention to what the former Federal Reserve chairman has to say. Even
worse though, is that if these Arab nations decide to drop their peg to the
U.S. Dollar this will further reduce demand for the currency. This will
result in the U.S. Dollar continuing its move lower.
It is certainly ironic that Greenspan who actually created this economic
mess through his easy money policies in the early part of the decade is now
encouraging other countries to move away from the U.S. Dollar. Greenspan has
done everything he could to destroy the currency both while he was the
Federal Reserve chairman and he�s
continuing to do it years after he quit the post. Even when Greenspan was the
Federal Reserve chairman all he did was increase the money supply and reduce
interest rates whenever there was an economic crisis. Greenspan is a criminal
because his policies are responsible for the current housing crisis and many
of the other problems we are seeing with the economy today. It is disgusting
that Greenspan would actually make statements that he knows will facilitate a
further destruction of the U.S. Dollar.
Second, the current Federal Reserve chairman Ben Bernanke shows no signs
of reversing course and setting policies that will save the U.S. Dollar. Bernanke
testified in front of Congress today and he indicated that they would
continue to reduce interest rates to prop up the economy. This is also a
criminal act. Bernanke would prefer to sacrifice the value of the U.S. Dollar
just to make the stock market look as if it is treading water. It is much
more destructive from a long term basis to destroy the monetary unit that the
economy is based off of than it is to raise interest rates and defend the
monetary unit. The Federal Reserve should be raising interest rates to defend
the U.S. Dollar. This would cause an immediate economic slowdown but long
term it would save the economy. Bernanke has decided to choose the wrong
option and this could cause an inflationary collapse.
Third, the FDIC is predicting that we are facing a crisis. An article from the Wall Street Journal
revealed that the FDIC is actually bringing on more people to deal with
future bank failures. They aren�t
hiring new people because it�s
a fun thing to do. They are bringing people on because they believe things
are starting to spiral out of control. This is without question an ominous
indication that we could be on the brink of a major collapse.
Fourth,
the government announced that they are lifting restrictions on Freddie Mac
and Fannie Mae in terms of the amount of mortgages they are allowed to hold.
As private banks fail, the government will need these two entities to take
over more of these mortgages. This is another indicator that the government
believes that we could see a ton of these private banks fail.
Fifth,
the Russians are going to slowly start moving their oil sales away from U.S.
Dollars and into Rubles. This will further erode demand for the U.S.
Dollar and continue accelerating its slide downward. This combined with the
Iranian oil bourse which has recently come online is going to increase
pressure on the value of the U.S. Dollar. The Iranian oil bourse trades oil
and other commodities for currencies other than the U.S. Dollar. It is
certainly interesting that we�ve
seen a huge decline in the U.S. Dollar since the Iranian oil bourse began
operations.
Sixth, we are beginning to see an escalation in food prices. In
particular, the price of wheat has gone through the roof and there have
been reports of panic buying. This is not only a monetary phenomenon but
it is also the result of the fact that there are government subsidies for
biofuels. Biofuels are essentially the result of food being turned into fuel
which means there is less food in the open market and this has resulted in
the price of food moving up. The United Nations has already been warning of
food shortages and there have been reports of food riots in different Middle
East countries. This is something that could occur in the United States if
the government continues to subsidize biofuels and the Federal Reserve
continues to inflate the money supply.
As scary as this is, these are just some of the lowlights over a few days
of economic news. To summarize, these news stories indicate that the U.S.
Dollar is being destroyed on several different fronts and this is resulting
in gold, silver and other commodities going up in U.S. Dollar denominated
terms. We didn't even get a chance to talk about the phony tax rebate scam
and the out of control spending by the clowns in Washington DC which are also
contributing to this disaster. The U.S. Dollar Index has dropped
substantially and we now see a situation where the U.S. Dollar is at an
all-time low versus the Euro. We are about to witness a financial calamity of
epic proportions and the establishment shows no sign of wishing to implement
policies to reverse this. The end game appears to be the continued
destruction of the U.S. Dollar which will allow the establishment to
implement the North American Union and a regional currency which will
completely undermine the sovereignty of the United States. The crisis in the
U.S. Dollar will be used to facilitate this phony solution which will give
the big multinational corporations and central bankers even more power.
The only way to survive this coming economic disaster is to buy physical
gold and silver. It also wouldn�t
hurt to stockpile ammunition, firearms, storable foods and survival
equipment. This is a very serious situation. We are going to see a
substantial rise in gold, silver and other commodities and we should see a
spectacular rise in the price of many junior mining stocks. The U.S. Dollar
is being destroyed through inflation and those who own precious metals will
be rewarded as precious metals serve as a fantastic defense against the
criminal central bankers that set these criminal policies.
Lee Rogers
Funny Money Report
www.funnymoneyreport.com
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