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 It is
incredible to see the rampant devaluation of the U.S. Dollar. The Federal
Reserve just hours ago made a rare cut of 25 basis points during the weekend
which will cause even more inflation. Gold immediately moved up $20 an ounce
and the U.S. Dollar Index plunged under 71 in international trading. If this type of
market activity continues the U.S. Dollar will have no value in a few months.
While it is probably unlikely that we will see a hyper-inflationary collapse
of the U.S. Dollar within the next few months, these policies are entirely
unsustainable. If the Federal Reserve does not move to defend the value of
the U.S. Dollar we will eventually see a hyper-inflationary collapse and
worldwide financial turmoil. This view is also shared by other well respected
financial analysts. Peter Schiff recently raised
concerns about a hyper-inflationary collapse of the U.S. Dollar,
Robert Reich a former Clinton
cabinet member believes we are facing a depression
and Alan Greenspan the man who caused this whole mess wrote in the Financial
Times stating that we are facing the
worst financial crisis since World War II. What’s
amazing is that the Federal Reserve isn’t even trying to protect the
U.S. Dollar because all they care about is saving the power of their private
banking cartel. They don’t care about the U.S. Dollar nor do they care
about the country itself. They are destroying this country through their
actions and there needs to be an investigation into the controllers of this
bank.
Alan Greenspan saying that we are facing the worst financial crisis
since World War II is like a killer returning to the scene of their crime and
explaining the results of their crime. Greenspan recently told nations in the
Gulf to drop their currency pegs to the U.S. Dollar which encouraged a
further drop in the U.S. Dollar. Greenspan’s Financial Times article
will cause an even greater acceleration in the collapse of the currency. As
the former head of the Federal Reserve, his comments still hold a great deal
of importance with people around the world. This means that his comments can
literally move the value of the U.S. Dollar one way or another. It is
incredibly sick how Greenspan can get away with creating the current crisis
we face with his low interest rate policies earlier this decade and analyze
the problems that are occurring today that were a result of his own policies
with no criticism from the corporate controlled media.
JP Morgan announced that it is
completing its buyout of Bear Stearns marking
further consolidation in the financial industry. Last Friday, the Federal
Reserve with JP Morgan stepped in and bailed them out from going out of
business. This was an unprecedented move by the Federal Reserve stepping in
and bailing out a failed financial institution.
JP Morgan will buy Bear Stearns for $2 a share which is amazing considering
that this stock was trading for around $50 a share just weeks ago. There’s
also talk that Lehman Brothers and other large financial institutions might
be facing a similar fate.
The U.S. Mint announced that it
wants to start melting pennies using steel. According
to the U.S. Mint it is now costing them 2 cents to produce every penny and 10
cents to produce every dime. Instead of targeting the real problem which is
the Federal Reserve, they’ve decided they want to change the melt
content of the coins which completely ignores what’s really happening. The
U.S. Mint should be questioning the irrational policies of the Federal
Reserve which has caused inflation to run out of control. It’s the
Federal Reserve that is causing the metal prices to cost more which is
resulting in the production cost of the coins to skyrocket. This is not very
difficult to figure out.
There’s no question that inflation is out of control in this country
considering that gold, silver, oil and food prices are skyrocketing. In order
to provide even more liquidity for the banks, the Federal Reserve made a rare 25
basis point rate cut over the weekend and are
poised to potentially cut rates again this week even as early as tomorrow. This
is going to be catastrophic for the U.S. Dollar.
With all this going on it is amazing to see characters like George W.
Bush and Henry Paulson state that the economy is doing just fine and not to
worry about what’s happening. White House Press Secretary Dana Perino also stated at a recent press conference that she
is not allowed to talk about the value of the U.S. Dollar
and that all questions pertaining to the U.S. Dollar needs to be directed
towards the U.S. Treasury. Of course Paulson the U.S. Treasury Secretary has
absolutely no control over the value of the U.S. Dollar because that
responsibility lies with the Federal Reserve since they set interest rates
and fix the value of the currency. Amazingly when Ben Bernanke
the head of the Federal Reserve testified in front of Congress, he directed
any questions about the value of the U.S. Dollar to the U.S. Treasury despite
the fact that he controls the value of money through their policies. This is
absurd. They treat us like we are a bunch of idiots, and this is an obvious
attempt by the establishment not to talk about the collapsing currency which
is one of the biggest issues of the day right now.
There are even tent cities popping up in
California. Of course the Federal Reserve
can spend billions to bailout banks, but they won’t help the average
middle class homeowner that might be thrown out into the streets as a result
of what they did through their policies. When will people understand that the
Federal Reserve is a private central bank that is merely looking to preserve
the interests of the banking cartel?
Bush has confirmed that he will be
meeting with the President’s Working Group on Financial Markets
otherwise known as the Plunge Protection Team this week.
There's no doubt that this will be an important meeting considering the
recent events in the financial markets. It is clear that this group stepped
in today to suppress the gold price. After a $20 spike during international
trading, gold has lost all of its gains and the U.S. Dollar has seen an
amazing recovery. This is totally ridiculous considering the combination of
the Bear Stearns news, Greenspan’s outlook in the Financial Times and
the rate cut. These people generally step in to move the price of gold down
on days when you would normally expect it to move higher in price and today
was no exception. Even the most novice of investors
can understand that this type of activity makes absolutely no sense without
market manipulation.
At this point it seems pretty certain that we are facing an
inflationary depression. What’s awful is that much of this is being
done by design. The Federal Reserve would prefer to save the banking cartel instead
of doing what’s best for the American people. A stable U.S. Dollar
would be what’s best for the American people but of course they
aren’t moving in that direction. It is likely that we are seeing the
start of a domino collapse in the U.S. financial system and it's
going to get ugly. If you haven’t bought gold or silver already you are
completely insane. In the next few years we may very well see a point in time
where you can buy an ounce of gold for the same value as the Dow Jones
Industrial Average. Only when we reach close to those levels will we know
that we might be near a top in the gold price and even that is being
conservative considering what’s happening.
By :
Lee Rogers
Editor, Funny Money Report
Lee
Rogers edits the Funny Money Report, whose object is to educate people as to the frauds of
our dishonest paper money system and to provide information on stocks in the
precious metal, base metal and assorted hard asset sectors. You can
subscribe to his newsletter by clicking here.
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