Posts Tagged ‘US dollar’


Matthew Boesler
Business Insider
June 20, 2012

Societe Generale is “enthusiastic on gold” — so much so that in their latest cross-asset strategy report, they call “buy gold ahead of QE3″ their number one strategy, saying it’s “the perfect asset to benefit” from additional loose monetary policy.

In the report, SocGen discusses the historical relationship between the price of gold and the U.S. monetary base. The SocGen team writes that “if gold catches up with the increase in the monetary base since 1920 (as it did in the early 80s), its price would rise to USD 8500/Oz,” adding that just “to close the gap with the monetary base increase since July 2007, gold would have to rise to $1,900/oz, assuming full transmission from the monetary base increase to the gold price.”

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Dominique de Kevelioc de BailleulBefore It’s News
May 4, 2012

In a riveting interview on TruNews Radio, Wednesday, private investigator Doug Hagmann said high-level, reliable sources told him the U.S. Department of Homeland Security (DHS) is preparing for “massive civil war” in America.

“We have problems . . . The federal government is preparing for civil uprising,” he added, “so every time you hear about troop movements, every time you hear about movements of military equipment, the militarization of the police, the buying of the ammunition, all of this is . . . they (DHS) are preparing for a massive uprising.”

Hagmann goes on to say that his sources tell him the concerns of the DHS stem from a collapse of the U.S. dollar and the hyperinflation a collapse in the value of the world’s primary reserve currency implies to a nation of 311 million Americans, who, for the significant portion of the population, is armed.

Uprisings in Greece is, indeed, a problem, but an uprising of armed Americans becomes a matter of serious national security, a point addressed in a recent report by the Pentagon and highlighted as a vulnerability and threat to the U.S. during war-game exercises at the Department of Defense last year, according to one of the DoD’s war-game participants, Jim Rickards, author of Currency Wars: The Making of the Next Global Crisis.

Through his sources, Hagmann confirmed Rickards’ ongoing thesis of a fear of a U.S. dollar collapse at the hands of the Chinese (U.S. treasury bond holders of approximately $1 trillion) and, possibly, the Russians (threatening to launch a gold-backed ruble as an attractive alternative to the U.S. dollar) in retaliation for aggressive U.S. foreign policy initiatives against China’s and Russia’s strategic allies Iran and Syria.

“The one source that we have I’ve known since 1979,” Hagmann continued. “He started out as a patrol officer and currently he is now working for a federal agency under the umbrella of the Department of Homeland Security; he’s in a position to know what policies are being initiated, what policies are being planned at this point, and he’s telling us right now—look, what you’re seeing is just the tip of the iceberg. We are preparing, we, meaning the government, we are preparing for a massive civil war in this country.”

“There’s no hyperbole here,” he added, echoing Trends Research Institute’s Founder Gerald Celente’s forecast of last year. Celente expects a collapse of the U.S. dollar and riots in America some time this year.

Since Celente’s ‘Civil War’ prediction of last year, executive orders NDAA and National Defense Resources Preparedness were signed into law by President Obama, which are both politically damaging actions taken by a sitting president.

And most recently, requests made by the DHS for the procurement of 450 million rounds of hollow-point ammunition only fuels speculation of an upcoming tragic event expected on American soil.

These major events, as shocking to the American people as they are, have taken place during an election year.

Escalating preparatory activities by the executive branch and DHS throughout the last decade—from the Patriot Act, to countless executive orders drafted to suspend (or strip) American civil liberties “are just the beginning” of the nightmare to come, Hagmann said.

He added, “It’s going to get so much worse toward the election, and I’m not even sure we’re going to have an election in this country. It’s going to be that bad, and this, as well, is coming from my sources. But one source in particular said, ‘look, you don’t understand how bad it is.’ This stuff is real; these people, the Department of Homeland Security (DHS), they are ready to fight the American people.”

TruNews Wiles asked Hagmann: who does the DHS expect to fight, in particular? Another North versus South, the Yankees against the Confederates? Hagmann stated the situation is far worse than a struggle between any two factions within the U.S.; it’s an anticipated nationwide emergency event centered on the nation’s currency.

“What they [DHS] are expecting, and again, this is according to my sources, what they’re expecting is the un-sustainability of the American dollar,” Hagmann said. “And we know for a fact that we can no longer service our debt. There’s going to be a period of hyperinflation . . . the dollar will be worthless . . . The economic collapse will be so severe, people won’t be ready for this.”

Source: Full TruNews interview, May 2, 2012.


Rob Wile
businessinsider.com
April 5, 2012

A Harvard Business School study that Niall Ferguson pointed us to today shows the U.S. has fallen severely behind in terms of international competitiveness.

The study, from January, found that for Harvard alums personally involved in a company relocation decision, 57 percent said the decision “involved the possibility of moving existing activities out of the U.S.”

Meanwhile, only 9 percent considered moving existing activities from another country into the U.S.

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Kurt Nimmo
Infowars.com
March 28, 2012

Federal Reserve boss Ben Bernanke told ABC’s Diane Swayer on Tuesday that gas prices will continue to skyrocket through the summer.

Bernanke told Sawyer gas prices “are a major problem” and he admitted they are “a hardship for lots of people.”

During the interview, he tried to pawn off the fallacy that gas prices are responsible for inflation, which he said will escalate over the next few months.

By inflation Bernanke means price increases. As Ron Paul notes, blame for this can be placed at the doorstep of the Federal Reserve.

“Most economists fail to understand that inflation is at its root a monetary phenomenon,” Paul wrote last March. “There may be other factors that contribute to price increases, such as famine, flooding, or global unrest, but those effects are transient. Consistently citing only these factors, while never acknowledging the effects of monetary policy, is a cop-out.”

Bernanke also claimed the rise in gas prices can be attributed to Iran and troubles in the Middle East. “The Middle East is very unpredictable — lots of things happening with respect to Iran and so on, so you know, we obviously — need to be — very attentive to that,” he told Sawyer.

Bernanke did not bother to explain how the Federal Reserve creates monetary inflation. It is really quite simple. More money equals less value.

The Federal Reserve is currently doing this through quantitative easing – increasing the money supply and flooding financial institutions with capital. Economists note that the problem with this is that although there is more money in the economic system, there is still a fixed amount of goods for sale.

Bernanke “admits he doesn’t understand why the economy is the way it is. Reality doesn’t fit his theory,” writes Zero Hedge. “So, what do you do when you are the head of the world’s biggest printing press, and don’t know what else to do? Why QE3 of course.”

On Tuesday, Bernanke hinted that QE3 may be right around the corner. He said more dilution of the money supply will be required due to vexatious unemployment.

High unemployment is directly related the the Federal Reserve and its engineering of boom and bust cycles through monetary policy. The Fed – as Bernanke has sheepishly admitted – was responsible for the so-called Great Depression and its staggering unemployment. It’s the same today.

Ben Bernanke is simply reading his bankster script, as instructed. If he was sincere, he would admit that rising oil prices do not create inflation. Oil prices are a reflection of a devalued dollar.

In an interview last year, ShadowStats editor John Williams said “the dollar’s weakness is doubly inflationary. It is the biggest factor behind the ongoing rise in oil prices.”

It’s not greedy oil baron in the Middle East or Iran threatening to close down the Strait of Hormuz in response to an attack.

It’s the Federal Reserve and the central banks.

 


Irwin Kellner
MarketWatch
March 26, 2012

Now that inflation is beginning to pick up, it is vital to distinguish between what is real and what is just an illusion caused by inflation. If one does not, one might very well come away with the impression that the economy is shifting into higher gear when, in fact, it is not.

Take retail sales, for example. On the surface they are encouraging, since February’s sales gain was the most in five months. And since retail sales are one-half of consumers’ spending, which in turn makes up two-thirds of overall economic activity, one might be tempted to conclude that the worst is over.

One would be wrong. First of all, these are dollar figures, adjusted for the time of year but not for inflation. Second, most of the rise reflected a 6% surge in gasoline prices.

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Doug Casey
Casey Research
March 25, 2012

In an interview with Louis James, the inimitable Doug Casey throws cold water on those celebrating the economic recovery.

[Skype rings: It’s Doug Casey, calling from Cafayate, Argentina. He sounds tired, but pleased with himself.]

Doug: Lobo, get out your mower; it’s time to cut down some green shoots again, and debunk a bit of the so-called recovery.

Louis: Ah. I have to say, Doug, the so-called recovery is looking more than “so-called” to a lot of smart folks. Even our own Terry Coxon says the recovery is real, albeit weak.

Doug: Terry’s probably looking at it by the numbers, some of which are reported to be improving. But let’s come back to the numbers later and start with fundamentals. The first order of business, as usual, is a definition: a depression is a period of time in which the average standard of living declines significantly. I believe that’s what we’re seeing now, whatever the numbers produced by the politicians may seem to tell us.

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Infowars.com
Monday, March 26, 2012

Alex talks with pastor and author Lindsey Williams about the timeline on the financial crash, what currency is a safe bet, and why Obama may not be re-elected due to his involvement in Keystone Pipeline.

 


The Economic Collapse
March 9, 2012

Not so fast.  Those that are publicly declaring that an economic recovery has arrived are ignoring a whole host of numbers that indicate that the U.S. economy is in absolutely horrendous shape.  The truth is that the health of an economy should not be measured by how well the stock market is doing.  Rather, the truth health of an economy should be evaluated by looking at numbers for things like jobs, housing, poverty and debt.  Some of the latest economic statistics indicate that unemployment is getting a little bit worse, that the housing market continues to deteriorate, that poverty in America continues to soar and that our debt problem is worse than ever.  If we were truly experiencing the kind of economic recovery that the United States has experienced after every other post-World War II recession we would see a sharp improvement across the board in most of our economic statistics.  But that simply is not happening.  Sadly, this is about as much of an “economic recovery” as we are going to get because soon the economy will be getting much worse.  So enjoy this period of relative stability while you can.


The Obama administration would have us believe that unemployment in the United States has declined, but the truth is that the percentage of working age Americans that are employed has stayed very, very flat for more than two years and now there are some measures of unemployment that are actually getting worse.

For example, according to Gallup the unemployment rate in the United States has risen from 8.5% in December to 8.6% in January to 9.1% in February.  The Obama administration would have us believe that it is actually going the other direction.

Initial unemployment claims are rising again.  For the week ending March 3rd, they increased by 8,000 over the previous week to 362,000.  This is not the kind of good news that people were hoping for.

What the U.S. economy could really use are millions of good jobs.  But those are being shipped out of the country at a staggering pace.

Right now there are millions of Americans in their prime working years that are sitting at home wondering what to do with their lives.  The average duration of unemployment in the United States continues to hover near a record high, and if we were truly experiencing an economic recovery it should have been falling by now.

But a lot of Americans have bought into the propaganda about an economic recovery and they are out running up huge amounts of debt once again.  In January, consumer credit increased by much more than expected.  The following is from a recent Reuters report….

Nonrevolving credit, which includes auto loans as well as student loans made by the government, rose $20.723 billion during the month. That was the biggest increase in dollar terms since November 2001, when credit was surging in the wake of the September 11 attacks in New York and Washington.

Don’t fall into the trap of debt slavery.  During the last recession millions of Americans lost their homes and most of what they owned because they got overextended.

Don’t do it.

The U.S. housing market continues to deeply struggle as well.  If we were really in an economic recovery housing would be bouncing back.  But that is not happening.  Just consider the following facts….

*The number of new homes sold in the United States continues to hover near a record low.

*U.S. home prices in the 4th quarter of 2011 were four percent lower than they were during the 4th quarter of 2010.

*According to CoreLogic, 22.8 percent of all homes with a mortgage in the United States were in negative equity as of the end of the 4th quarter of 2011.  That was an increase from 22.1 percent in the third quarter.

Why are things still getting worse for the U.S housing market?

That is a really good question.

We should have seen some improvement by now.

But it isn’t happening.

Also, poverty in America continues to explode.

For example, the number of Americans on food stamps has increased to 46.5 million – a brand new all-time record.

If we really were in an economic recovery, wouldn’t that number be going down?

We should be thankful that the U.S. economy is not declining as rapidly as it was during 2008 and 2009.  But what we are experiencing right now is not an economic recovery.  It is simply just a bubble of false hope.

The big problem is that our nation is covered in an ocean of constantly expanding debt.

U.S. consumers are drowning in debt, U.S. businesses have pushed debt levels to the red line, and the U.S. financial system is massively overleveraged.

Of course government debt is our biggest debt problem of all.

All over the nation, state and local governments are on the verge of financial ruin.

If we were in the middle of an economic recovery, so many states would not be in crisis mode.  A recent article in the Los Angeles Times declared that “California could run out of cash in March“.  As the economy continues to crumble we are going to hear a lot more of this kind of thing.

A lot of local governments around the nation are on the verge of total financial collapse.  Stockton, California has announced that they will be defaulting on some debt payments, and Suffolk County in New York recently declared a fiscal emergency after discovering that it would rack up more than 500 million dollars of debt between 2011 and 2013.

Keep your eyes open for more news items like this in the months ahead.

Of course the biggest problem of all is the U.S. national debt and it continues to rapidly get worse.

According to the Congressional Budget Office, the U.S. government had a budget deficit of 229 billion dollars in the month of February.  That is the worst one month budget deficit in the history of the United States.

The Congressional Budget Office also says that the U.S. government is now borrowing 42 cents of every single dollar that it spends.

Ouch.

The U.S. national debt has gotten more than 59 times larger since 1950.

The U.S. national debt is now more than 22 times larger than it was when Jimmy Carter became president.

Are there any words in the English language that are strong enough to describe how foolish we have been?

Of course we won’t be able to accumulate so much debt indefinitely.  At some point the trillion dollar deficits will stop and our false prosperity will disappear.

If you want to get an idea of what happens then, just take a look at Greece.

But Barack Obama and most members of the U.S. Congress don’t really care about what they are doing to our future.

What they care about is winning the next election so that they can continue living their fabulous lives.

Barack Obama is supposed to be taking care of the American people, but instead he has been very busy taking care of the people who helped him get elected.  Politics in America is all about money.  Just check out the following very short excerpt from a recent article in the Washington Post….

More than half of Obama’s 47 biggest fundraisers, those who collected at least $500,000 for his campaign, have been given administration jobs. Nine more have been appointed to presidential boards and committees.

At least 24 Obama bundlers were given posts as foreign ambassadors, including in Finland, Australia, Portugal and Luxembourg. Among them is Don Beyer, a former Virginia lieutenant governor who serves as ambassador to Switzerland and Liechtenstein.

Washington D.C. is deeply corrupt and if you are waiting for our politicians to fix our problems you are going to be deeply disappointed.

The federal government is not going to save you.

Our politicians are not going to save you.

You better figure out how you are going to take care of yourself and your family in the years ahead because this is about as good as things are going to get.

This “economic recovery” is about to end and more pain is about to begin.

 


Kurt Nimmo
Infowars.com
February 27, 2012

As Zero Hedge rightly notes, the latest Wikileaks dump – a collection of emails hacked from Stratfor by Anonymous – is a dud. It consists of liberals whining about Obama and calling him a “pussy” for not confronting the so-called right side of the one party system that serves the bankster elite.

One comment in particular reveals that the so-called left encamped in the district of criminals remains completely and hopelessly out of touch with reality. It suggests Obama “could also tell the banks to go screw themselves.”

How is it possible Democrats still do not realize Obama is owned by the banksters and he does not tie his shoes in the morning without first consulting them? Evidence is bountiful.

Soon after Barry the CIA groomed candidate was selected and trotted out with messianic fervor, Open Secrets posted a list of his top contributors, including: Goldman Sachs, Citigroup, UBS and Morgan Stanley.

Obama is still the preferred candidate of the money masters. “Obama has brought in more money from employees of banks, hedge funds and other financial service companies than all of the GOP candidates combined,” reports the Washington Post.

Reports that bankers are turning against Obama “are exaggerated and overblown,” according to one top banking exec cited by the Post. He said “it probably helps from a political perspective if he’s not seen as a Wall Street guy.”

Obama’s light chiding of banks and his supposed anti-Wall Street rhetoric are nothing but more election season nonsense designed to once again fool Democrats as another dog and pony show masquerading as an election approaches.

Clueless and mesmerized Democrats digest the propaganda without question because they want to believe Obama is a savior and champion of the supposed left despite the fact Goldman Sachs and the Federal Reserve call the shots, same as they would if a Republican sat in the Oval Office.

 


Greg Hunter
USA Watchdog
Monday, February 27, 2012

A good friend of mine, who has family living abroad, called me this weekend. One of the first things out of his mouth was about his sister in London and how she was dealing with “terrible inflation.” No doubt he was talking about the spike in gasoline prices that have risen to more than $8 a gallon. (The official inflation rate in the UK is around 3.6%, but I’m sure the numbers over there are as reliable as the inflation numbers in the U.S. where fuel and food are not counted in the so-called “core” inflation.)


Part of this price spike is due to Iran cutting off crude oil shipments to the EU recently, but part of it is the fact the UK has been engaging in quantitative easing (QE), or money printing, to help its ailing economy and insolvent banks. Just in the last few weeks, it announced another $50 billion in QE. The UK is not alone as most Western countries are engaging in QE to prop up an insolvent system bloated on bad debt.

“Inflation is always and everywhere a monetary phenomenon.” This famous quote from Nobel Prize winner Milton Friedman really says it all about what is happening to fuel prices and inflation. The Federal Reserve is creating trillions of dollars in new currency to paper over the meltdown of 2008 and stave off a sovereign debt crisis in Europe. Oil is priced in dollars; so, of course, fuel prices are rising around the globe. An article on Zerohedge.com, last Friday, predicts oil hitting $200 a barrel in the next 5 years, but I think we will hit that mark much sooner. The post unabashedly said, “The sole reason why crude prices are surging . . . is because global liquidity has risen by $2 trillion in a few short months, on the most epic shadow liquidity tsunami launched in history in lieu of QE.” (Click here for the complete Zerohedge.com story.)

According to millionaire investor Jim Rogers, the Fed has already started its third round of QE. In an interview on Reuters, last week, Rogers said, “We already have QE3 … Get out the Federal Reserve’s balance sheet. You’ll see that they’ve been pumping up – you can see unadjusted M2 is going through the roof.”

Full article here